[COMPOUND] Aera <> Compound Extension

Voting ended over 1 year agoSucceeded

Simple Summary

For over a year, the Compound DAO has used Aera for treasury management. This proposal builds upon prior work to further operationalize the DAO's treasury.

There is currently an excess of USDC and DAI reserves in Compound V2, which could be deployed in lending markets to generate yield for the treasury. Additionally, a portion of the ETH in the Compound Treasury can be utilized to generate yield.

This continuation of the existing programs will enable the DAO to drive a new yield source. The expected impact of this proposal is $30M~ in additional Compound V3 TVL and $1M+ in additional treasury revenue via yield generation.

Deployment details:

Compound Treasury (2,000 ETH)
Compound V2 Reserve Assets (15M DAI and 10M USDC)
The vault’s objective function will be updated from targeted volatility to yield generation. This ensures the stablecoin reserves do not get allocated to volatile assets.
The vault will continue to allocate into Compound V3 lending markets to generate yield on the underlying assets.

For more details, please refer to the Forum Post.

Specification

This proposal will:

Add new assets to the vault: DAI and cWETHv3 Pricer, which prices the vault's WETH lending position
Accept ownership of a new hooks module at address 0x8A216F2C84a3fE5a51Bf57B685864A065D14C53a. We need to deploy a new hooks module and have the Governor Bravo timelock accept ownership of it to get around a limitation in Governor Bravo that only 10 actions can be called in a single proposal. Without this workaround, adding the following function sighashes would put this proposal over that limit. This new hooks module already has all the existing hooks, plus the following new sighashes: cWETHv3 supply & withdraw, and DAI approve (needed to trade it for USDC)
Wrap a portion of the ETH currently in the timelock into WETH
_reduceReserves on both DAI and USDC V2 reserves
Approve WETH, DAI, and USDC to be deposited into the Aera vault
Deposit the assets into the Aera vault

https://compound.finance/governance/proposals/348

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Timeline

Oct 16, 2024Proposal created

Oct 17, 2024Proposal vote started

Oct 19, 2024Proposal vote ended

Mar 26, 2026Proposal updated

Simple Summary

For over a year, the Compound DAO has used Aera for treasury management. This proposal builds upon prior work to further operationalize the DAO's treasury.

Deployment details:

Compound Treasury (2,000 ETH)

Compound V2 Reserve Assets (15M DAI and 10M USDC)

The vault’s objective function will be updated from targeted volatility to yield generation. This ensures the stablecoin reserves do not get allocated to volatile assets.

The vault will continue to allocate into Compound V3 lending markets to generate yield on the underlying assets.

For more details, please refer to the Forum Post.

Specification

This proposal will:

Add new assets to the vault: DAI and cWETHv3 Pricer, which prices the vault's WETH lending position

Accept ownership of a new hooks module at address 0x8A216F2C84a3fE5a51Bf57B685864A065D14C53a. We need to deploy a new hooks module and have the Governor Bravo timelock accept ownership of it to get around a limitation in Governor Bravo that only 10 actions can be called in a single proposal. Without this workaround, adding the following function sighashes would put this proposal over that limit. This new hooks module already has all the existing hooks, plus the following new sighashes: cWETHv3 supply & withdraw, and DAI approve (needed to trade it for USDC)

Wrap a portion of the ETH currently in the timelock into WETH

_reduceReserves on both DAI and USDC V2 reserves

Approve WETH, DAI, and USDC to be deposited into the Aera vault

Deposit the assets into the Aera vault