Summary
The Venus Comptroller is the heart of the Venus Protocol. It maintains the record of all deposits and borrowing and calculates what actions can and cannot happen for all assets on the protocol. It is not only incredibly important, it is a very large and complex contract, and has grown over time as Venus has evolved.
This latest update includes several key changes.
Liquidator reward allocation
Venus will update its liquidation interface to accommodate for the liquidation incentive change in accordance with the Venus V3 tokenomics with the goal of increasing revenue for Venus Protocol.
The current 10% liquidation incentive will be split into two parts:
- Half of the liquidation incentive along with the seized collateral will be sent to the liquidator. Thus, the liquidators will receive 105% of the liquidated borrow amount in collateral vTokens instead of the current 110%.
- Half of the liquidation incentive (5% of the liquidated borrow amount) will be sent to the Venus treasury.
After a grace period of at least 72 hours, during which both the old interface and the new interface will be available, the Comptroller contract will disable its liquidation interface and only the new interface will remain active.
Liquidation Allocation Details
The old liquidation process allowed liquidators to directly interact with the vTokens (token representations of assets supplied to Venus) and call for the liquidation of unhealthy accounts by repaying some of the targeted account debt.
The new liquidator adds a Liquidator Contract to Venus Protocol and liquidators will be required to call this contract to initiate liquidations. This Liquidator Contract will then allocate a portion of the liquidation reward to the Venus Treasury.
Comptroller fragmentation and misc. updates
A new public interface function (claimVenusAsCollateral) will allow the collateralization of pending rewards to allow liquidation of accounts with not enough collateral to cover borrowed assets.
These latest updates are extensive. They not only modify the liquidation handling process in the vToken contracts, but it has also expanded the Venus Comptroller contract beyond the deployable size possible on an EVM blockchain with BSC block sizes. In order to accommodate these needed changes, the Venus development team has organized the Comptroller into several smart contracts that interact with each other.
Audits
Due the significant impact of these changes, the Venus team has verified these changes in four distinct audit process of increasing levels of intensity:
- Internal Audit: A unique, rigorous process that applies various exploit checks.
- 2 Binance Audits: We have a partnership with Binance, and 2 separate audit teams have verified the contract changes meet Binance specifications.
- CertiK Audit: This audit was a multi-month process verifying the industries’ latest security requirements.