I voted yes on @compoundfinance proposal 032. This proposal would distribute COMP to offset losses incurred by liquidated DAI positions. etherscan.io/tx/0x2dc20d2e5… I thought about this a lot over the weekend, and while I expect the proposal to fail here is my reasoning regardless.
Factoring in all risk @compoundfinance is probably the defi platform I trust most. Excluding SNX there have been times when 50% of my crypoassets have been on deposit there. I think it is one of the safest places in DeFi you can put your funds.
However, there are risks, and liquidations due to anomalous prices are foremost among these. The reason I voted yes is that I want to ensure there is skin in the game for all COMP holders, so they are hyper aware that the funds on deposit are at risk, and they are responsible.
Right now there is indirect alignment between COMP holders and depositors, while this proposal sets an aggressive precedent I think it is one which is unlikely to be repeated in the future if all Compound stakeholders are aligned. This is also a good initiative to restore trust.
The final point I will make is that I would highly suggest the Compound community at least discuss with @chainlink, the possibility of using their oracles as a backstop. And I say this as someone who holds no LINK, but as an SNX I am holder extremely aligned with CL security.
I would also ask the link marines not to brigade this post, it won’t help further the conversation and will likely hinder it. Let the process play out, and we will see whether we can make any progress on this front. If not that is fine too!
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