Share this article
A Compound governance proposal, which would have handed out ~$8.7 million (~55,000 COMP), has failed. It would have partially reimbursed users that were liquidated back on the eve of Thanksgiving.
Compound Attempts Bailout
The proposal aimed to reimburse users who were liquidated due to a price oracle failure the day before Thanksgiving.
If passed, affected users would have received 8% of their total liquidations in the form of COMP tokens. For Example, if a user had 100 DAI liquidated, then that user would have received 8 DAI worth of COMP tokens. The Thanksgiving liquidation resulted in a ~$100 million liquidation in a span of 24 hours. The proposal hoped to reimburse just under $9 million of that sum.
The proposal began as a Compound Autonomous Proposal (CAP) and exceeded the 100,000 votes needed to pass a formal proposal. However, when the proposal was introduced as a formal proposal, it failed to gather the same support.
The formal proposal earned ~212,000 votes for and ~681,000 votes against.
Noteworthy names that voted against the proposal included Polychain Capital, Dharma, Argent, Pantera Capital, and many more.
Kain Warwick, Founder of popular DeFi protocolSynthetix, voted in favor of the proposal. He said that this would align the interests of both the COMP holders as well as the COMP depositors going forward.
Pantera Capital, an investment firm, stated that they had voted against the proposal. They believed that users participating in a permissionless protocol should be aware of the risks they are undertaking, and as such, they should not be compensated.
Gauntlet, a tokenomics firm that has been very active in Compound governance of late, decided to abstain from voting.
Compound Finance Proposal Ushers in the Future of Work
Tokeneconomics firm, Gauntlet Network, has just passed a new proposal on the popular DeFi platform, Compound. The protocol is now allowed to pay independent contributors to the protocol in native…
Compound User Liquidated for $49 Million, Price Oracle Blamed
Compound has seen over $100 million in liquidations in the last 24 hours, according to LoanScan. More than half of the collateral liquidated was in the form of DAI, a…
Why Fees and Transaction Costs Matter?
Most traders can quickly recite the requisite win rate, average expected return, risk levels, and position sizes that are necessary to their success. These metrics often vary from trader to…