Compound passes proposals 204 and 205 and will adjust the configuration parameters of cUSDCv3 on Polygon and Ethereum chains

Compound has announced that Proposals 204 and 205 have reached the required number of votes and have been passed. Under Proposal 204, Compound will adjust the distribution of COMP token rewards in Ethereum V3 USDC, reducing the daily COMP reward from 381.40 to 100. Considering the current COMP price of $50, this reduction in rewards will save 5.14 million COMP per year and reduce the total token release on the market by 25.5%. Proposal 205 adjusts six interest rate parameters in Polygon V3 USDC.e, including:

1. Increasing the low-end annual borrowing rate slope from 0.035 to 0.04;

2. Raising Borrow Kink from 0.8 to 0.85;

3. Increasing the high-end annual borrowing rate slope from 0.25 to 0.7;

4. Raising the low-end annual supply rate slope from 0.0325 to 0.04;

5. Increasing Supply Kink from 0.8 to 0.85;

6. Raising the high-end annual supply rate slope from 0.4 to 0.65.