A Compound governance proposal seeks to set legacy on-chain COMP reward accrual speeds to zero across affected Comet markets, migrating reward distribution to the Merkl platform. The proposal clarifies that legacy reward calculation methodology is unchanged; only the distribution and claims mechanism shifts. Season 1 under the new architecture applies the same logic to future incentives going forward. The change is framed as a technical migration under existing mandates rather than a policy reversal.
Armada's crypto desk monitors Compound borrow and supply rates as DeFi benchmarks when pricing crypto-collateralized repo against market alternatives. A shift in how COMP rewards are distributed changes the effective all-in yield for borrowers and lenders on Compound, which can move the competitive benchmark Armada prices against. If Merkl-distributed rewards alter net incentive rates in key markets like ETH or USDC, Armada's spread assumptions may need recalibration.