Compound, through proposals 204 and 205, will adjust the configuration parameters of Polygon and Ethereum chain's cUSDCv3

Compound announced that proposals 204 and 205 have been passed with the required number of votes. According to proposal 204, Compound will adjust the distribution quantity of COMP token rewards in Ethereum V3 USDC, reducing daily COMP rewards from 381.40 to 100 tokens. Considering the current price of COMP is $50, this reward reduction will save $5.14 million in COMP per year, thereby reducing the total amount of tokens released on the market by 25.5%. Proposal 205 adjusts six interest rate parameters in Polygon v3 USDC.e:

1.The annual borrowing rate slope at low levels has been increased from 0.035 to 0.04;

2.Borrow Kink has been raised from 0.8 to 0.85;

3.The annual borrowing rate slope at high levels has been increased from .25 to .7;

4.The annual supply rate slope at low levels has been increased from .0325 to .04;

5.Supply Kink has been raised from .8 to .85;

6.The annual supply rate slope at high levels has been increased from .4 to .65.