SAI Governance, Infura Livestream, MyCrypto Q&A

Compound Digest - May 20, 2020

Welcome to the Compound newsletter. Join our community and discuss on Discord or Twitter!

Proposal 003: Limiting SAI

Following MakerDAO's shutdown of SAI, members of the Compound community debated and proposed that the protocol gradually deprecate the legacy stablecoin SAI.

Proposal 003 reduces the SAI Collateral Factor from 75% to 65% (making it less useful to borrow against), and increases the Reserve Factor from 10% to 100% (the portion of interest set aside as reserves). The proposal succeeded with 100% of 726,812.88 votes in favor, passed through the two-day timelock, and was executed on May 19, 2020.

Thank you to everyone that participated in the discussion and governance process! If you continue to supply or borrow SAI, please consider migrating into another asset.

Live Stream Developer Workshop with Infura

We’ll be co-hosting a developer workshop this week with Infura on the Consensys Academy weekly live stream! Sean Brennan from Infura and Adam Bavosa from Compound will review the concepts and code required to build your own API to invoke Compound protocol smart contracts using conventional HTTP requests, using Infura as the bridge between the Ethereum network and your application. This is a fun one for Node.js JavaScript developers.

This livestream expands on Adam’s article Create a Compound Smart Contract API With Infura. The live stream will take place tomorrow, Thursday, May 21st, at 12pm EDT. To get the Zoom link, and ask prior questions, sign up here.

It is recommend that attendees run through the aforementioned blog post prior to attending the live stream.

MyCrypto Q&A

MyCrypto is a wallet aggregator and service aggregator, bundling various Ethereum projects and protocols into one dashboard. Users can send, swap, and buy assets, in addition to many other activities. The current beta can be found at beta.mycrypto.com.

What went into building MyCrypto?

MyCrypto launched in early 2018 as a fork of MEW, which many are familiar with. Over the last couple of years, we've re-written the entire codebase and are now spending most of our time building a product that redefines our existence as a "wallet."

What have you not said publicly yet?

One of the most interesting things about crypto is the more you know, the more scared you are. We all have these weird, unique processes to make sure we don't screw up when we move subjectively large amounts of crypto around. “Did I copy the right address? Is this address a scam? Let me send a test transaction first.” It's a healthy fear but it's also a pain in the behind!

We're launching a feature in the next few days that addresses some of this fear and hesitation. With this feature, you’ll input the recipient address, and we’ll display available information about that address. This information will be pulled from various analytics & compliance databases and, when displayed, will ideally give you the confidence that you’re sending to the right place. (Or the alternative: the information doesn’t look correct to you, you double check and realize you’ve input the wrong recipient address, and you’ve been saved from losing money! And everyone claps!)

What does your tech stack look like?

Frontend: A React / Typescript app that uses React Hooks & Context for state management and the user's client-side browser Local Storage for persistence.

Backend / Ethereum nodes: An AWS Cloudformation config that deploys a Parity (now OpenEthereum) node cluster with periodic S3 backup for quick-syncing of new nodes.

Data backend: An AWS Terraform Golang microservices architecture.

We don't collect personally-identifiable analytics information about our users. No ETH addresses, IP addresses, etc.

We use a smart contract to aggregate ERC-20 balance lookups across multiple tokens and addresses. Normally this would require tens of thousands of separate calls (aka $$$$) for a single power-user’s MyCrypto dashboard or reliance on a third-party API. Instead we use the blockchain + any standard JSON-RPC provider.

Unsurprisingly, we’re eager to get more feedback! What are your thoughts on the beta? What would make your overall crypto/Ethereum experience better? It’s a tell-all interview and you’re invited to drop all of your thoughts on us here https://forms.gle/8EECrH7dyx7Dzg5a9.

Jordan Spence, CMO at MyCrypto

More Links & Discussions

Markets Update

Current supply is at ~$125 million from ~19,300 unique addresses. In the past seven days, approximately $39 million (gross) was added to Compound, in almost 4,000 transactions. About 80% of this volume was USDC, 10% was ETH, and 8% was DAI.

Open borrowing is at ~$19.5 million from ~1850 unique addresses. In the past seven days, approximately $5.1 million (gross) was borrowed from Compound. About 36% of this volume was ETH, 34% was DAI, and 19% was USDC.

For live figures please refer to our Markets page.

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Governance adds Tether & cDAI Rates, Gnosis Q&A, and Donut Launches

Compound Digest - May 06, 2020

Welcome to the Compound newsletter. Join the community discussion on Discord or Twitter!

Governance

Since the launch of community governance, two protocol changes have been proposed, voted on, and implemented into Compound.

The first, submitted by Geoff Hayes (Compound’s CTO), was a proposal to Add USDT Support to Compound. The second, submitted by Dharma (a popular application that integrates Compound), was a proposal to Update the Dai Interest Rate Model to Better Accommodate a Zero Stability Fee for DAI, as set in the Maker protocol.

Visit the Governance Dashboard to see full details on each proposal, as well as which governance delegates voted for or against each proposal.

Proposal 001: Add USDT Support, by Compound

Tether (USDT) support has been requested by the Compound community for months, and became the first-ever Compound governance proposal.

This proposal added USDT as a borrowable asset with its own interest rate — but did not allow USDT to be used as collateral. The code to support the USDT market was reviewed by the Compound team as well as OpenZeppelin.

The proposal succeeded on April 29, was queued into the governance timelock for two days, and was executed on May 1. The Tether market is now live for you to use!

Proposal 002: Updating the DAI Interest Rate Model, by Dharma

Dharma is a user-friendly wallet for crypto dollars (stablecoins), built on the Compound Protocol. In the first-ever community-sponsored governance initiative, Dharma proposed to adjust the DAI interest rate model to provide a modest interest rate to capital suppliers when utilization of the DAI market is below 90%. This change is intended to improve the DAI supplier experience with minimal impact to the borrower experience.

Dharma’s proposal succeeded on April 30, and was executed on May 2.

The success of this proposal marks a momentous shift in the history of Compound. It is the first instance of a protocol change driven end-to-end by the Compound community, as opposed to the Compound team.

We’re incredibly proud to have Dharma as a key member of our community, and very excited to see what the community comes up with next.

Compound and the Dragon Quest Hackathon

We saw six submissions for the Compound bounties in the MetaCartel Dragon Quest Hackathon. Thank you to all that participated! We’ve been excited to see all of the fun and interesting innovations you are building on DeFi. The winners of the Compound bounties are Dedge and the Governance SDK. Below are links to all of the submissions and their source code.

Borrow Bounty Submissions

  • Dedge (WINNER) - Dedge gives users the ability to instantly swap collateral or debt between different crypto assets. Here is the StudyDeFi GitHub.

  • Minimal Finance - A minimal ETH supply and DAI borrow interface powered by Compound. Here is the GitHub repository and the hosted DApp.

  • Favela sem Corona - An app that helps people that live in poor areas of Rio de Janeiro, to receive crypto donations in cDAI and use them like fiat. Here is the GitHub repository.

Governance Bounty Submissions

  • Node.js Compound Governance and COMP SDK (WINNER) - Node.js library for interacting with the Compound Governance ecosystem, specifically with the Governor Alpha and COMP contracts.

  • Minimal Governance - A Compound governance dashboard that shows a leaderboard and proposals for both Mainnet and Ropsten. Here is the GitHub repository and the hosted DApp.

  • Destiner's Compound Governance Dashboard - An app to keep track of Compound’s governance process, currently for Ropsten. Fetches data from the blockchain (params and proposals) and Compound API (accounts). Here is the GitHub repository and the hosted DApp.

Gnosis Releases Safe Apps with Compound

Gnosis Multisig is a secure wallet for Ethereum assets. The team has just launched Safe Apps, which enables direct interaction with DeFi and other Ethereum applications from the Gnosis wallet interface. Users can choose to add protocols like Compound to their wallet, and then make multisig transactions across applications from a single user interface.

What went into building the initial product?

We launched our new Gnosis Multisig product a few months back as a successor to our original multisig. This enabled a much better user experience and also allowed us to build out app integration. The core aspects that make this possible are our SDK, UI kit and components to make it easy for teams to build their apps.

What don’t people know about Gnosis products?

Our multisig products are some of the most used contracts on Ethereum. Combined, there are over $600M in assets stored. These funds currently don’t have an easy way to enter the growing DeFi ecosystem. We think we can help bring the next $1bn to DeFi.

What does the tech stack look like?

Our tech stack is quite standard: Modular Solidity smart contracts, a React frontend and a Django backend for data aggregation and the transaction relay service.

The SDK requires only experience in JavaScript. If you want to extend Safe contracts with modules you will have to look into Solidity too. ALL we do is open source! Take a look: https://github.com/gnosis

How can devs use Gnosis Safe with Compound to build something awesome?

The current Compound integration into gnosis-safe.io is very basic and only allows users to use their Multisig funds in Compound without compromising multisig security. This is already great but we can do more with Gnosis Safe contracts. Gnosis Safe contracts can be extended with modules, which allow DeFi automation.

One idea for Compound could be a bank run protection: In case there is an issue on Compound all user funds could be withdrawn from Compound without user interaction - trustlessly. Another idea is rebalancing funds between different DeFi apps, lots of opportunities.

What are the next steps and goals for Gnosis Safe Apps?

The first few months after Safe Apps launch will be heavily focused on developers. We want to build a large list of applications for multisig users to pick from. We think this can then prove to be the most secure and easy way to interact with applications on Ethereum and our goal is to continue to grow our user base. 

We are very excited that Compound is the first app to be developed and we’d love to hear users’ feedback on the integration! 

Eric Conner, Gnosis

Donut converts spare change into Compound Crypto

Donut is a mobile app that converts users’ spare change into bitcoin, and also enables users to accrue interest on digital dollars (stablecoins). Users connect their cards/bank accounts using Plaid. When they make a normal, everyday purchase, the cost is rounded up to the nearest dollar, and this “round-up” is automatically converted to bitcoin. Users can also directly deposit dollars, which are converted to DAI and supplied to Compound to earn interest.

Donut recently launched on Product Hunt, where they were the second highest-upvoted project of the day. Check out more details and Q&A on their Product Hunt page!

More Links & Discussions

Markets Update

Current supply is at ~$116 million from ~19,000 unique addresses. In the past seven days, approximately $32 million (gross) was added to Compound, in almost 4,000 transactions. About 43% of this volume was DAI, 29% was USDC, and 22% was ETH.

Open borrowing is at ~$19 million from ~1800 unique addresses. In the past seven days, approximately $5.5 million (gross) was borrowed from Compound. About 72% of this volume was DAI, 19% was USDC, 8% was WBTC, and 2% was ETH.

For live figures please refer to our Markets page.

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Governance is Live on Mainnet, ETHGlobal DeFi Hackathon, MYKEY Q&A

Compound Digest - Apr. 22, 2020

Welcome to the Compound newsletter. Join the community discussion on Discord or Twitter!

Compound Governance is now Live

Compound Governance is now live. As of April 16th, the Compound team is no longer the administrator of the protocol; instead, all future modifications to the protocol will be proposed and voted on by the community. This is a milestone on the path to fulfilling our vision of an open protocol that can evolve in entirely new ways.

The community has put together a forum for open discussion on protocol changes. See compound.comradery.io to collaborate on proposals before you vote. In order to get started voting on proposals, see the Governance Guide - How To Vote on a Proposal.

Developers are highly encouraged to start building their own tools and interfaces to participate in governance of the protocol. For example, anyone can now build their own interface similar to the governance explorer on the Compound website.

To get started building, see the Compound Governance Quick Start Guide on our blog. It includes links to a GitHub repository that has some open source examples.

Compound Voice AMA

In other Compound news, we held our first, experimental live-voice AMA. Robert Leshner, co-founder and CEO of Compound, answered community questions in our Discord. There were lots of great questions about what the future holds now that the protocol is governed by the community. We also got a sneak peek of the first upcoming governance proposal, which we’ll likely see in the next week. Here is an MP3 download link of the AMA recording, in case you missed it.

Compound is Sponsoring ETHGlobal’s Hack Money Virtual DeFi Hackathon

ETHGlobal, which hosts some of the most popular in-person Ethereum hackathons, is hosting its first virtual event, Hack Money. Starting in May, Hack Money is a DeFi-themed Ethereum hackathon, with more than $25k worth of prizes. 

There will be 2 Compound bounties up for grabs, each worth $1000 of cUSDC:

  • Bounty #1 will go to the team that creates the best project that implements borrowing through Compound. This project can be an SDK, API, or application. See our Borrowing Quick Start Guide for an introduction to developing borrowing integrations. 

  • Bounty #2 will go to the team that creates the best project that implements Compound governance. See our Governance Quick Start Guide for an introduction to developing governance integrations. 

Hackathon participants can ask technical questions in the Compound Discord #development channel.

Robert Leshner and Calvin Liu will be hackathon judges and you’ll also see them on speaker panels. Registration for the event is now closed, but stay tuned for more announcements.

MyKey Q&A

MYKEY provides a handy and secure smart contract wallet on multiple blockchains, to lower barriers and enable mass adoption. 

In the interest of making access to blockchains easier, MYKEY provides key management and handling of gas fees, so developers can concentrate on the core of the application.

What don't people know about MYKEY?

Our smart contract logic is upgradable, transparent, and secure. We publish the contract upgrade reason and open source code along with 3rd-party security audits. These are published to the community in advance. When a contract is deployed features need to wait 4 days before activation. Here's a link to the MYKEY Ethereum documentation.

MYKEY grew from 0 to 13000 signups on Ethereum in 3 months.

What do developers love about MYKEY?

MYKEY offers free network fees and free transaction quota for every user. We also have documentation to help developers get started using MYKEY in their app.

What’s different about your Compound implementation?

Multi-Operation Transactions. Usually, when a new user deposits an ERC-20 asset into the Compound protocol, two signatures are needed for two transactions — approve and deposit. MYKEY wraps the two operations into one single, atomic transaction. This way, the user only needs to sign one transaction to deposit an asset, bringing a smoother experience.

Ricky Shi, Co-founder & COO, MYKEY

More Links & Discussions

Markets Update

Current supply is at ~$117 million from ~18,000 unique addresses. In the past seven days, approximately $36 million (gross) was added to Compound, in almost 5,300 transactions. About 58% of this volume was DAI, 23% was ETH, and 18% was USDC.

Open borrowing is at ~$27 million from ~1700 unique addresses. In the past seven days, approximately $5 million (gross) was borrowed from Compound. About 70% of this volume was DAI, 18% was USDC, and 11% was ETH.

For live figures please refer to our Markets page.

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Exodus Wallet Release, 88mph App Insights, and MetaCartel Virtual Hackathon

Compound Digest - Apr. 08, 2020

Welcome to the Compound newsletter. Join the community discussion on Discord or Twitter!

Compete for Compound bounties in the Dragon Quest Hackathon

MetaCartel’s latest virtual hackathon, Dragon Quest, is taking place throughout the month of April. In addition to competing for the main prize, developers can compete to win two Compound bounties:

To be considered for Compound bounties, hackathon projects must use the Compound smart contracts in a practical application, SDK or API.

Please join the Compound Discord #development channel and ask about joining a team, code questions, or details on how to submit your completed project. The submission deadline is April 30th.

Exodus Wallet launches Compound support

Exodus is a desktop and mobile wallet that supports over 100 different cryptocurrencies. The team strives to remove the “geek requirement” and eliminate confusing steps when using cryptocurrency.

See their video for using cTokens.

What went into building the initial product?

Exodus desktop was first released to the public on Dec 9th, 2015. At this time, it was just my co-founder and I attempting to prove that people would be interested in a beautiful cryptocurrency wallet with a built-in exchange platform. We were so obsessed that we even took customer calls on our personal phones, which we listed in the app itself! 

Being a design-driven company, we knew we could focus on creating a beautiful user experience for those new to cryptocurrency and power-users alike.

What don't people know about Exodus?

Many people are surprised to hear we have a mobile wallet: https://www.exodus.io/mobile. Today, when people think Exodus, they think we’ve just built a beautiful desktop wallet. 

We also get comments about the fact that our customer support team responds 24 hours a day and on weekends. Being present and quick to respond is an essential part of building trust with the people who use Exodus.

On the security front, Exodus has a team dedicated to auditing every single line of code - even third-party dependencies. Many companies blindly trust third-party code and we believe this is an irresponsible practice. 

What’s different about your tech stack?

Our goal is to build Exodus in such a way that it won’t ever depend upon us as a company to be successful. This will mean building all backend services to function solely via P2P - we’re a long way off from this, but we believe this is essential to ensure this software is about the people and not about us.

On the desktop, we’re using Electron and React. On mobile, we’re using React Native.

What innovations do you intend to build with your Compound integration?

We’re excited to bridge non-ethereum assets into our Compound integration e.g. BTC to wBTC. Additionally, we’d like to build a governance interface for COMP token holders to participate in Compound governance.

JP Richardson, Co-founder & CEO of Exodus

88mph Launches

Bacon Labs, the same team behind Betoken and Fantastic12, has released 88mph, an app that provides fixed-rate DAI interest. A user’s deposits are locked in 88mph's pool for a minimum of 91 days. The DAI earns interest at a fixed-rate, instead of the varying interest rate like the DSR.

Why call it 88mph?

It's like your interest is traveling back from the future! Lock your DAI, and earn upfront fixed APY. We saw a huge opportunity to capture the underserved DeFi fixed-rate market. We wanted to do it in a fun and simple way.

We got the original idea in October, 2019 and started forging some memes around the concept, as well as building out the smart contracts. We really started working on the product in March 2020 and shipped the product on Ethereum Mainnet on Monday, March 30, 2020.

What comes in the next release?

"Rendez-vous" on Monday April 13th to access a new 88mph release:

  • Unlock your deposit before maturity. Your money, your way.

  • Get a higher upfront fixed APY on Compound. We are cooking a new formula.

  • Enjoy an upgraded website with fancy illustrations.

What does your tech stack look like?

  • Front end: Angular, Web3.js, Apollo

  • Back end: Graph Protocol

  • Smart contracts: Compound, DAI

  • Smart contract development: Buidler, Tenderly, OpenZeppelin

What are the next steps for your 88mph?

  1. Several security audits to reassure our users base.

  2. Reaching $2m TLV in the next 12 months by making abstractions for 99% of the DeFi tech stack and lexicon for the end user.

Dear Compound users, we’d love your feedback. And more specifically, what’ll make us fail according to you? Contact us at https://baconlabs.dev/

Guillaume Palayer & Zefram Lou, Bacon Labs

More Links & Discussions

  • ConsenSys updated its Defi Scores including for Compound.

  • Set Protocol Social Traders can now create Social Trading Sets using cTokens.

  • CoinTracker, tax tools that support Compound accounting, has reached 100k users!

Markets Update

Current supply is at ~$123 million from ~17,500 unique addresses. In the past seven days, approximately $26 million (gross) was added to Compound, in almost 6,300 transactions. About 46% of this volume was USDC; and 29% was DAI.

Open borrowing is at ~$22 million from ~650 unique addresses. In the past seven days, approximately $7 million (gross) was borrowed from Compound. About 86% of this volume was DAI; and 9% was USDC.

For live figures please refer to our Markets page.

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New Developer Guides, Governance Explorer, Fireblocks, TokenSets, and Coinbase Wallet Announcements

Compound Digest - Mar. 25, 2020

Welcome to the Compound newsletter. Join the community discussion on Discord or Twitter!

Compound Protocol Developer Quick Start Guides

Want to build an application that utilizes the Compound Protocol? Don’t know where to begin? You’re not alone. Software development is hard. Learning something new, especially blockchain development, can be daunting.

We've published three guides for beginners to get started building apps that implement the Compound Protocol. Whether you’re experimenting with a project at a hackathon, or thinking about launching the next big DeFi startup, we hope these guides provide you with a useful walkthrough of how to interact with Compound.

  1. Setting up an Ethereum Development Environment

  2. Supplying Assets to the Compound Protocol

  3. Borrowing Assets from the Compound Protocol

These three guides take you through the entire process of getting your development environment set up, supplying assets, and borrowing assets from the protocol with Solidity or JavaScript. Before running through the code, we also walk through key concepts for Ethereum development, as well as how the Compound protocol works.

Open source code examples are hosted on GitHub — here are the repositories for supplying assets and borrowing assets. Dig in, and don’t hesitate to jump into our #development channel in Discord if you have any questions!

Compound Governance Explorer

We've just launched a Governance Explorer to browse the upcoming proposals, addresses, and actions related to Compound Governance. The functioning governance system itself has not launched, but will roll out in line with the plans we outlined in our initial announcement last month.

The overview section of the Explorer will list recent proposals created by governance participants. Here you’ll be able to investigate proposal descriptions, statuses, and vote counts, and stay abreast of the latest potential and accepted updates to the protocol.

Below, in the leaderboard section of the Explorer, you’ll be able to view Top Addresses by Voting Weight — the top delegates in the Compound Governance system. If you are a supporter and champion of the Compound protocol, one of those addresses might one day be yours! 

Fireblocks Offers Institutional-Grade Access to Compound

FB-Compound-Newsletter-v2b@2x

Fidelity-backed crypto security and wallet software provider Fireblocks has integrated with Compound to allow its clients to earn interest directly through Fireblocks’ API or user interface.

With features including multi-party computation (MPC), HSM/hardware isolation, insurance, multi-user access and permissioning, an institutional-grade user interface, and a robust API, Fireblocks has created a product tailored towards institutional investors who previously could only interact with protocols like Compound using MetaMask or Ledger.

TokenSets Announces cToken Trading Pairs

Set Labs builds asset management products on top of Ethereum. TokenSets, the main interface used to interact with Set, makes accessible to users various automated, algorithmic trading strategies including Robo Sets and Social Trading Sets.

Set previously announced support for cTokens in their Robo Sets in February, but has since expanded support for cTokens by making it frictionless to purchase cTokens with ETH, USDC, DAI, WBTC, or LINK through the TokenSets interface.

We managed to speak to the team and get some more details around Set!

How did the idea for Set Protocol come about?

An interesting fact that many people aren’t aware of is that Set Protocol was born out of the ETHWaterloo hackathon in 2017!

How can devs use Set Protocol with Compound to build something awesome?

Set Protocol, at a high level, allows any dev to create digital asset management products using any ERC20 assets that rebalance based on any arbitrary logic. Compound cTokens unlock many awesome products that can be built using Set.

Some examples are interest bearing stablecoin baskets composed of cDAI / cUSDC, more aggressive yield seekers / stablecoin arbitrage strategies that trade between cDAI and cUSDC whenever DAI is not $1, or a DCA strategy that periodically rebalances cDAI interest earned into ETH or WBTC. 

Can you describe what you’ve built with the Compound protocol?

We’ve recently built a buy / sell flow that is natively integrated with cToken minting / redeeming. In one click, users are able to supply ETH, exchange for USDC on Kyber/0x, mint cUSDC, and mint a cUSDC Set (e.g. ETHMACOAPY). This way, users do not need to manually mint cUSDC from the Compound interface or trade for cUSDC in the secondary markets and suffer slippage to acquire Sets.

What comes next for Set Labs?

We will soon be enabling trading with cToken pairs for Social Traders on TokenSets. Users who follow these traders’ strategies will be able to earn interest on cDAI or cUSDC instead of cash when traders close out a trade.

Richard Liang & Anthony Sassano, Set Labs.

Coinbase Wallet Launches Native Compound Support

Coinbase Wallet has added support for Compound, integrated directly into their application — so that you can earn interest without having to navigate through a browser.

Earning interest through Compound is one of the most popular activities on Wallet. We're excited to integrate and simplify the experience so we can make DeFi approachable to a mainstream audience.

Sid Coelho-Prabhu, Coinbase Wallet Lead

Coinbase Wallet users can select a supported asset, select a source of return (Compound), and enter the quantity of the asset — which is then supplied directly to the Compound protocol. Interest earned is shown in real-time in Coinbase Wallet, and assets can be withdrawn back to Coinbase Wallet anytime.

More Links & Discussions

Markets Update

Current supply is at ~$102 million from ~16,700 unique addresses. In the past seven days, approximately $51 million (gross) was added to Compound, in almost 6,800 transactions. About 40% of this volume was DAI; 40% was ETH; and 15% was USDC.

Open borrowing is at ~$21 million from ~1,700 unique addresses. In the past seven days, approximately $11 million (gross) was borrowed from Compound. About 61% of this volume was DAI; and 36% was USDC.

For live figures please refer to our Markets page.

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