In this screenshot, you can see the changes made to the become function. These have been made just to simplify the governance proposal in order to activate it. The idea is that since no new markets are being added, the new Comptroller can just rely on existing storage.
Additionally, the refreshCompSpeeds function has been changed to refreshCompSpeedsInternal for admin functions such as when new markets are added. In these situations, we need to call the internal function because all admin functions are called through a smart contract (timelock).
These code changes are relatively simple as far as smart contracts go. Significant logic changes were intentionally avoided to allow for quick deployment and eliminate the need for an external audit. I believe that this contract can be deployed without an audit.
The newly deployed Comptroller is set as the pending implementation comptroller and then becomes the comptroller.
The COMP distribution between markets will be based on total value of borrows in that market instead of interest paid in that market (this COMP distribution is still split 50/50 between lenders and borrowers). Initially, BAT will still be the largest recipient of COMP; however, users will quickly move out of BAT because paying interest will no longer be incentivized and the high reserve factor on BAT cuts into farming profits.
While I do not know what will happen, I predict that the interest rates across all markets will almost equalize (not quite though because the market is a bit erratic and there are different reserve factors). This is because borrowing is still encouraged for COMP farming but users will try to pay minimal interest. I don’t believe that this is the ideal situation (different assets have different inherent time value and should be reward as such), but it will cause the protocol to have safer utilization rates and lower interest rates. Our risk as a community will be mitigated and we will be able to think our next steps over more thoroughly and slowly.
This proposal comes as a quick fix with limited logic changes in order to get us out of an unideal situation. As such, it can be deployed quickly without audits and with limited risks. I support this proposal.