The upgrade includes a few changes including the introduction of a minimum delay period for protocol changes (timelock), and an emergency button dubbed the “Pause Guardian”.
Reducing administrative power
The update will see a reduction in administrative power, by making it much slower for protocol administrators to make changes to the system.
This will be done via the implementation of a minimum delay period, or timelock.
Such timelocks will impose a compulsory ‘waiting phase’ between the announcement of a protocol upgrade and its actual implementation. Community members will be able to use this phase to audit the upgrades and provide feedback.
Timelocks will last a minimum of 2 days following an announcement, with suggested times of up to 14 days for major upgrades.
Since administrators will no longer be able to immediately upgrade the protocol or address vulnerabilities, an emergency button has also been implemented.
This button, called the “Pause Guardian” will allow a temporary system shutdown of most functions, should a significant vulnerability be discovered.
The Pause Guardian will suspend borrowing, transfers, and liquidations, but will still allow users to close their positions and exit the protocol.
Compound v2.2 will also further streamline the borrowing flow, by automating the entry of borrowers into token markets.
The upgrades are just one part of a much larger plan to completely decentralize the protocol.
You can check out the v2.2 release on Github