Compound Digest - October 22, 2020
cCOMP Market Launches
Following a successful voting period and execution of proposal 27, COMP is now a supported market on Compound. cCOMP uses the same implementation contract as cUNI and is deployed with a 60% collateral factor, a 20% reserve factor, the JumpRateV2 interest rate model, and a 50k COMP borrowing cap.
The cCOMP market can delegate its voting rights to any address Compound Governance approves, just as with the cUNI market. In the future, it’s likely we’ll see these markets vote as a single large block on governance proposals for Compound and Uniswap.
At the time of writing there is over $9 million of COMP in the market, with about $7 million of liquidity.
Announcing Compound Developer Community Calls
Starting next week, the Compound developer community will begin holding bi-weekly calls as a discussion forum for folks building applications on the protocol, or making changes to the protocol.
Held every other Wednesday at 9:30am PT / 4:30pm GMT, starting 10/28 (Google Calendar invite)
In the Compound Discord, with video/voice participation in the #compound-live channel, and text participation in the #development channel.
All developers welcome, though discussion will focus on Compound application and protocol development.
Hope to see you there!
New Advanced Coinbase Earn Tasks
Coinbase launched new Advanced Earn Tasks for Compound, rewarding users with $10 of COMP for supplying USDC to Compound.
In the lesson, Coinbase provides users with $3 of USDC (and enough ETH to cover gas fees) to their Coinbase Wallet accounts. Inside of Coinbase Wallet, users can natively supply and withdraw assets from Compound, and be rewarded with COMP for doing so. 25,000+ Coinbase users have completed the advanced lesson, contributing to the protocol surpassing 60,000 total suppliers.
Along with the other available Earn tasks, users are now able to earn a total of $59 in COMP through Coinbase.
Since the last newsletter, Proposals 26 and 27 passed through Compound Governance with near-unanimous support.
Proposal 26: Uniswap Improvement Strategy
Status: Executed October 13th, 2020
Voting Results: 466,606 For and 1 Against
Summary: In response to the high demand for supplying/borrowing UNI on Compound, blck proposed a set of upgrades for the cUNI market. This proposal changed the interest rate model from JumpRateV2 to a more aggressive model, increased the borrow cap to 5M UNI, and set the Borrow Cap Guardian to the Community Multi-Sig.
Proposal 27: Add COMP Support
Status: Executed October 17th, 2020
Voting Results: 622,697 for and 1 Against
Summary: Proposal 27 added COMP, the governance token for Compound, as the latest supported asset on the protocol.
Getty Hill created a new autonomous proposal to increase the collateral factors of ETH and USDC from 75% to 85%. He explained in an accompanying Twitter thread that high liquidity for these assets reduces the risk of liquidation default and justifies more efficient borrowing. Consider delegating your support to this CAP, or follow this guide to create your own if you have at least 100 COMP.
See below for highlights from the Compound governance forum, and join in the discussion:
Lower Gas by Removing COMP Auto Distribute! - @lay2000lbs suggests removing the automatic COMP distribution in order to reduce gas fees.
A Leaner, Meaner Comptroller - @jared proposes a set of ideas to simplify the Comptroller contract, in order to make it easier for future developers to upgrade the protocol.
Helping to bring more real-world users to Compound - Three new product ideas for the Compound community - @Bud shares ideas on how to implement under-collateralized borrowing on Compound.
Setup community cUNI Voting - @jhvst discusses how cUNI holders would be able to participate in a hypothetical dividend paid from Uniswap governance.
Vesting for the Compound protocol - @tarun details a newly added pull request that contains vesting for COMP rewards, COMP grant functionality, reduced Comptroller size, and an independent vesting module that other projects can leverage.
Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to the representative of your choice.
Current supply on Compound is $2.3B from ~60k unique addresses. In the past seven days, approximately $785M (gross) was added to the protocol, in 27k transactions. 41% of this volume was ETH, 27% was DAI, 15% was USDC, and 14% was WBTC (source).
Open borrowing is at $1.3B from 5.8k unique addresses. In the past seven days, approximately $243M (gross) was borrowed from Compound in 1.5K transactions. 69% of this volume was DAI, 18% was USDC, 7% was USDT, and 4% was ETH (source).
For live figures please refer to our Markets page.
Image source: IntoTheBlock.
Links & Discussions
IntoTheBlock released a dashboard with over 20 detailed charts on the Compound protocol.
Key members of the Compound community are working on comp.vote - an application for by-signature voting and delegation.
SafePal, a hardware wallet solution backed by Binance Labs, integrated Compound to allow users to earn interest directly within the SafePal App.
Andre Cronje wrote a boilerplate governance guide based on Compound’s governance contracts.
@MonetSupply wrote a Twitter thread on the state of risk management for money market protocols like Compound.
Getty Hill published an opinion on how to more accurately assess borrowing risk on Compound with safety scores.
Tweet of the Week
Coinbase @coinbaseYou can now start advanced tasks for Earn Compound (COMP) on Coinbase. Learn how to use USD Coin with @compoundfinance, natively within the Coinbase Wallet app. Start learning how to earn interest with Compound today. https://t.co/6Et6kn3lIt