Conversation

1) We just proposed a change to the Compound protocol, taking the WBTC collateral factor up from 0 to 65%. compound.finance/governance/add compound.finance/governance/pro

compound.finance

Compound | Profile - Alameda Research

Compound is managed by a decentralized community of COMP token-holders and their delegates, who propose and vote on upgrades to the protocol.

5:20 AM · Jul 5, 2020Twitter Web App

Replying to

2) Currently WBTC is lendable on Compound but unlike $ETH, $DAI, $USDC, etc., it cannot be borrowed against. We think that its risk is comparable to the more liquid assets on the platform and so should have a similar collateral factor.

SBF

@SBF_FTX

Jul 5, 2020

3) We also think this will help to diversify the platform away from the current DAI-dominance. H/T to @seb_alameda for developing the patch!

Replying to

and

The reason this isn't a good idea is bc compound is only as strong as its weakest collateral. Borrowers are exposed to the *combined* risks of custodial collateral sources. Also, why now? I'd rather wait and have DAI dominance until tBTC is battle-tested.