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.

Tweet of the Week

New DeFi Product Innovations Developed With Compound

Compound Digest - Mar. 13, 2020

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

ZenGo Built A Keyless Crypto Wallet With Compound

ZenGo is a crypto wallet for mobile devices that has done away with private keys. The “keyless wallet” is a radical new approach to crypto asset management that requires no passwords, no special hardware, and no complicated backup schemes.

ZenGo announced that the wallet now supports earning of interest, which is powered by the Compound protocol behind the scenes.

What does your tech stack look like?

We could not build a universal crypto wallet using existing tech stacks based on private key or even smart contracts. They were either too complicated or not calibrated to grow with the industry. We had to use a different cryptographic approach.

ZenGo uses MPC (Multi-party computation) and Threshold signatures. This is the only crypto app/ wallet to do that to date at such a level of performance. This enables us to provide keyless wallets and ways to onboard users to crypto with unprecedented smoothness.

We call it 3FA. It’s a new way to authenticate with 3 factors using no password. We use, among other things, advanced, live biometrics to secure the accounts of our customers. We built our stack with C++, Rust, React Native, Redux-saga, and Node.js.

What interested you in Compound?

It was very well documented and coded. It was a delight to build on top of it. We took our time to really study the Compound protocol, in particular, the liquidator part for which we documented our research, available to all here: https://zengo.com/defi-research-understanding-compound-liquidators/

What are the next steps and goals for ZenGo?

We are building a lot more than a crypto wallet. ZenGo wants to become your default mobile crypto bank for all needs with a crisp, smooth user experience where users are in control.

We are adding, one-by-one, the service layers of the app. We are patient in our approach but try to make sure it fits our standards. We will introduce groundbreaking financial and security services very soon that only MPC can power.

Try ZenGo. But more importantly, try any other wallet first before you try it :)

Ouriel Ohayon, co-founder and CEO of ZenGo

Argent Raises a $12M Series A

Argent is a mobile crypto wallet startup that never holds user’s assets. The team recently announced that Argent raised a Series A with several investors.

The wallet aims to keep user experience simple by removing common barriers associated with crypto. No seed phrases, gas is behind the scenes, and Fiat-to-crypto on ramps work with as few taps as possible.

What went into building the initial product?

We set out to build the first non-custodial wallet with the ease of use and security of the best new bank apps - without the bank. Crypto is unfamiliar to many, so we asked ourselves what mental models from the traditional world could help. That helped us with our recovery method, Guardians, which is a bit like calling your bank to regain access to your account if you lose your card.

What does the tech stack look like?

Our mobile clients are native (Swift & Kotlin). This gives us complete control of the user experience and limits dependency on third-party security frameworks. We use AWS (with Terraform), Postgres, and Java.

Our smart contracts are written in Solidity. We've chosen a modular architecture for the smart-contract of our wallet. Each user has a unique BaseWallet contract that holds their assets and identity, and that contract defines a set of modules that are authorized to invoke and transfer the assets. The modules are shared amongst the Argent users and each of them contains a piece of the wallet's functional logic. For example the CompoundManager module is a contract that orchestrates the interaction between the wallets and the Compound protocol. This unique approach makes the Argent wallet extremely flexible and easier to audit.

What comes next for Argent?

We want to be the easiest and safest place to access DeFi. We encourage the Compound community to test Argent and share their thoughts on how we can eliminate all the barriers to using crypto. Skip the queue by tapping this link on your phone: https://argent.link/compound

Itamar Lesuisse, co-founder and CEO of Argent

CoinTracker’s Portfolio Tracking Interface Supports Compound cTokens

CoinTracker provides crypto portfolio tracking tools as well as tax tools. Compound users can use CoinTracker to get their taxes completed quickly and accurately.

Why use CoinTracker?

CoinTracker makes cryptocurrency portfolio tracking and taxes easy. We support 3,000+ coins across 300+ exchanges/wallets/platforms (including Compound!). At the core, we want to help increase the economic stability and prosperity of the world. To date, this has been in the form of making cryptocurrency portfolio tracking and taxes extremely simple.

We take great pride in ensuring that user's tax reports are correct. We have gone to the extent of personally meeting with the IRS in their Washington DC headquarters multiple times to ensure that we are getting this right. Many famous executives from top cryptocurrency companies use CoinTracker for their personal cryptocurrency portfolio tracking and taxes

What went into building the initial product?

We started with a super simple minimum viable product. Basically a simple web app  productionizing the spreadsheets we were using to track our own cryptocurrency portfolios (here is how we were thinking about cryptocurrency portfolio tracking in January 2018). Our tech stack is made up of Python, Flask, Redis, Postgres, React, React Native, and Heroku.

What are some technical challenges being tackled at CoinTracker?

Price History: 10B+ rows of pricing data for every coin on every exchange for all history that have to be matched to every symbol and deduplicated for overloaded symbols, plus matched for mismatched symbols (e.g. BTC and XBT are the same).

Cost Basis: We need to be able to calculate cost basis on the fly when a user adds a new transaction to their history. This is particularly challenging when a whale trader with 1M+ transactions adds an old wallet and their whole cost basis and capital gain history needs to be updated quickly with optimized algorithms and data structures. We also have to apply local tax rules depending on the user’s location.

Chandan Lodha, co-founder of CoinTracker

ETHLondon 2020

The ETHLondon 2020 hackathon spawned several awesome, new DeFi applications. We’ll shed some light on the new innovations developed using the Compound protocol.

1hop.io

The 1inch.exchange team of “crypto maniacs” took 4th place with their newest hackathon project. 1hop.io is an easy to use collateralized debt position (CDP) manger for migrating positions between DeFi providers like Compound. Here is a link to the 1hop.io Devpost submission page which includes code on GitHub.

Laxmi

Laxmi is a P2P, non-custodial and gas-less payments app with a built-in reward system for transactions, powered by DeFi protocols. The team that built Laxmi won the Pepo UX prize. Here is a link to the Laxmi Devpost submission page which includes code on GitHub.

PatronDai

PatronDai is like Patreon but with a DeFi spin. The service enables people to deposit DAI and earn interest using the Compound protocol. The interest is intended to be distributed to creators or projects the patron supports. Here is a link to the PatronDai Devpost submission page.

Spells.fyi

Spells.fyi is a dashboard for DeFi contract changes. It monitors time-lock transactions from origination to execution for Curve.fi, Compound, Dharma and more. It was built using The Graph and React.js. Here is a link to the Spells.fyi Devpost submission page which includes code on GitHub.

Links & Discussions

Markets Update

  • Crypto prices plunged over the past week. ETH/USD checked in at a high of ~$250 on March 7, and at a low of < $100 on March 12. At the time of this writing, the price of ETH/USD is approximately $122 — the stats below reflect this price volatility.

  • Current supply is at ~$116 million from ~16,500 unique addresses. In the past seven days, approximately $113 million (gross) was added to Compound, across over 10,000 transactions. About 43% of this volume was ETH; 26% was DAI; and 25% was USDC.

  • Open borrowing is at ~$32 million from ~1,800 unique addresses. In the past seven days, approximately $24.1 million (gross) was borrowed from Compound, across over 1,400 transactions. About 78% of this volume was DAI; and 16% was USDC.

For live figures please refer to our Markets page.

Tweet of the Week

Alethio@AlethioEthstats
Updated Network graph (past 3 months) built on top of our DeFi API:
docs.aleth.io/api#tag/DeFi. Living version coming soon! Check out our DeFi dashboard @ aleth.io/data/defi in the meantime (more protocols & visuals being added each week!). A couple key takeaways below...

Announcing Community Governance, ETHDenver Recap

Compound Digest - Feb. 26, 2020

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

Compound Governance

Today, we’re proud to introduce a governance system that will replace the Compound protocol’s administrator with community governance — allowing you to suggest, debate, and implement changes to Compound — without relying on, or requiring, our team whatsoever.

We’ve been designing, building, and auditing this system for months, and it is now running on Ethereum’s Ropsten testnet:

Participation in governance starts with the Compound governance token, COMP. You can request testnet COMP from our team in Discord now — just ask nicely!

For more details:

ETHDenver 2020 Recap

Thank you to everyone that showed us some love at ETHDenver! It was inspiring and validating to see all of the cool projects you brainstormed and built at the hackathon. It was a pleasure getting to hang out with so many passionate developers at our Valentine’s day happy hour.

Our bounty, with Keep Network, to build the best DeFi experience on tBTC, was awarded to Bitcoin Earn! Congratulations! All of the team submissions are available for viewing on GitHub.

Bitcoin Earn

Bitcoin Earn allows you to start earning interest on your Bitcoin. Deposit your Bitcoin to create tBTC (tokenized Bitcoin), convert your tBTC to Compound Bitcoin, and start earning interest while still HODL’ing.

Robosaver

Robosaver is a DApp and suite of smart contracts that allows users to deposit their funds into a user owned/controlled Robosaver contract which moves their funds into lending platforms and currencies with the highest interest rates. YouTube video clip of the hackathon project here.

ShopiFi

We were excited to see that several teams used Compound without pursuing the bounty. The ShopiFi team showcased “Compound Crunch” in its lineup of cereals from “General Shills.”

ShopiFi allows e-commerce solutions to funnel USD purchases into DeFi protocols like Compound, PoolTogether or Chai.money via a credit card or Apple/Google Pay.

Thank you to the many other teams that used Compound. We’re excited to see you again at ETHDenver 2021!

Opyn allows you to insure your DeFi deposits

Trustless insurance is now available in DeFi. A new product, from a company called Opyn, allows people to take out options on stablecoin deposits, allowing users to hedge against any risk of loss of assets supplied to the Compound Protocol.

Opyn is the first place where you can get comprehensive cover, protecting you against both financial risks like oracle attacks and technical risks like hacks. In the aftermath of the bZx attacks, users are finding that a complex DeFi ecosystem poses real risks. Our mission is to help users eliminate those risks in user's portfolio.

Insurance buyers are protected by insurance providers, who are paid premiums to collateralize ETH. This allows DeFi users to collect meaningful premiums on their ETH for the first time in DeFi by being insurance providers.

Zubin Koticha, Co-founder and CEO of Opyn.

For information on integrating Opyn into your DApp, visit opyn.co. The team can be reached immediately on their Discord server or Twitter.

More

Markets Update

  • Current supply is at ~$197 million from ~16,000 unique addresses. In the past seven days, approximately $55 million (gross) was added to Compound, in almost 7,000 transactions. About 40% of this volume was DAI; 35% was ETH; and 24% was USDC.

  • Open borrowing is at ~$44 million from over 1,700 unique addresses. In the past seven days, approximately $4.8 million (gross) was borrowed from Compound. About 51% of this was volume was USDC; and 45% was DAI.

For live figures please refer to our Markets page.

Tweet of the Week

Meet us at ETHDenver, Gauntlet Audit Results, DeFi hits $1 Billion

Compound Digest - Feb. 11, 2020

Welcome to Compound’s latest newsletter. Join us on Discord and Twitter to discuss!

Compound Team at ETHDenver

We’re coming to ETHDenver! Look for the ones in the Compound t-shirts. Adam Bavosa (Developer Relations Lead) and Max Wolff (Software Engineer) will be in attendance.

You can also find us on our Discord server https://compound.finance/discord. Join the #ETHDenver and the #development channels for help with code.

We’ve written developer quick start guides for Ethereum Development with Compound so you can hit the ground running:

Announcing ctBTC! Including an ETHDenver Bounty

We’re excited to be working with tBTC (Bitcoin on Ethereum) from Keep Network to bring Bitcoin to Compound users, and are co-sponsoring an ETHDenver bounty for the “Best Bitcoin to DeFi experience.” Catch us Friday in Denver at the Compound x Keep Network Happy Hour (PW: BTConDeFi) to learn more.

  • Bounty: Build the best Bitcoin to DeFi Experience

  • Prize: $1,000 DAI

  • Requirements: The only strict criteria is that your project must include a BTC to tBTC to ctBTC flow. Must use tbtc.js (https://github.com/keep-network/tbtc.js) and Compound’s open source contract integration. (https://github.com/compound-finance/compound-protocol)

You’ll also need:

  • A Ropsten Ethereum wallet with ETH (1-5 should be sufficient to start with)

  • A Bitcoin testnet wallet with BTC (minimum 0.001, though you'll probably want 0.5 or so to have plenty of testing possible)

  • tBTC API documentation: http://docs.keep.network/tbtc/solidity/

  • Compound API documentation: https://compound.finance/developers/api

  • What is tBTC?

Here are the Compound tBTC (ctBTC) contracts up on Ropsten:

## Ropsten ctBTC
0xB40d042a65Dd413Ae0fd85bECF8D722e16bC46F1

## Ropsten tBTC
0x083f652051b9CdBf65735f98d83cc329725Aa957

Gauntlet Releases the Compound Market Risk Assessment Report

Gauntlet has released its report on Compound Market Risk Assessment. The team at Gauntlet stress-tested the Compound Protocol for a plethora of market conditions. Read more about the report here.

“Potential Compound users can view this report as defining a rigorous actuarial methodology for understanding potential risks, gains, and losses in a multi-agent decentralized system.”

- Tarun Chitra, CEO of Gauntlet

DeFi crosses $1 Billion

That figure is the measure of all the crypto held in projects that provide interest rates, hedge, abstract, swap or otherwise enable decentralized and open finance using Ethereum's smart-contract powers, as totaled by DeFi Pulse, which first showed the collective market at $1 billion at 8:00 UTC Friday.

In CoinDesk’s story, founder of Compound, Robert Leshner commented "Satoshi would be extremely proud.”

Deposit to Dharma Directly from Your Debit Card

debit card deposits in dharma

Their team just announced on their blog that Dharma is now accessible directly from your debit card. This means that users can deposit from their debit card and withdraw to their bank account thanks to Wyre. There are, however, strict limits that they aim to raise over time.

Dharma also announced that in February, they will deploy a new system of smart contracts, called dTokens, which are a wrapper around Compound cTokens. Visit their blog post for more details and timeline.

iEarn Finance Has Launched

Maximize DeFi Yields with newly launched iEarn Finance. It’s a yield aggregator for lending platforms that rebalances for highest yield whenever the contract is interacted with.

iEarn aggregates money market protocols like Compound for optimal yields. Check out iEarn Finance’s GitHub.

Curve is in Alpha

Curve.fi is a stablecoin liquidity pool, using an automated market maker mechanism, that is in alpha with cUSDC and cDAI pairs, and already has >$1 million in liquidity.

"Curve is an automatic market maker which uses bonding curves working particularly well for stablecoin. It combines market-making and lending (via Compound) to have even higher yield. Currently, [c]DAI/[c]USDC and [c]DAI/[c]USDC/USDT versions are available."

- Michael Egorov, Founder of Curve

Other Links

Markets Update

  • Current supply is at ~$195 million from over 16,000 unique addresses. In the past seven days, approximately $50 million (gross) was added to Compound. About 70% of this volume was DAI and USDC; the mainder was mostly ETH.

  • Open borrowing is at ~$36 million from over 1,500 unique addresses. In the past seven days, approximately $5.4 million (gross) was borrowed from Compound. About 85% of this was volume was DAI and USDC; the remainder was mostly ETH.

For live figures on Compound please refer to our Markets page.

Tweet of the Week

Eidoo and DefiSnap Launches, Recent Protocol Updates, and More

Compound Digest - Jan. 28, 2020

Welcome to Compound’s latest newsletter! In this issue:

  • Eidoo launches its new DeFi Exchange product, enabling users to easily access DeFi protocols, starting with Compound.

  • New data dashboard DefiSnap enables users to easily track and visualize DeFi assets and liabilities in one comprehensive view.

  • Rho proposes a protocol for fixed interest rate swaps built on Compound’s variable interest rate markets.

  • Recent protocol updates include adjustments to the interest rate models for the cUSDC/cETH markets; and an adjustment of the collateral factor for cREP.

Read on for more, and join us on Discord and Twitter to discuss!

Eidoo Launches DeFi Exchange, Enabling Easy Access to Compound

Eidoo has launched its DeFi Exchange product, enabling users to easily discover and interact with DeFi protocols. Compound is one of three DeFi protocols supported by Eidoo at launch.

Users who have Eidoo downloaded can access DeFi Exchange on both mobile or desktop, and frictionlessly supply assets to Compound and acquire interest-earning cTokens.

For more details on the integration, see the “Learn More” resource on Eidoo’s blog.

Visualize Balances Across DeFi Protocols with DefiSnap

DefiSnap is a new platform for simple, snappy, all-in-one monitoring of any Ethereum address’s balances (assets and liabilities) across various DeFi protocols, including Compound.

Try inputting an Ethereum address or ENS domain of interest to the DefiSnap dashboard here!

Rho Specification Released; Facilitates Fixed Interest Rates on Compound

The Rho Protocol proposes a first-of-its-kind exchange for on-chain interest rate swaps using an automated market maker mechanism; like Uniswap but for transforming users’ open-term, variable interest rate borrows or supplies on Compound into fixed-term, fixed-rate borrows or supplies.

Using Rho, an interest rate speculator or hedger would be able to instantly access fixed or variable interest rate swaps by transacting with the Rho protocol directly, at any time, instead of having to ever wait for a counterparty to take the opposite side of the desired swap.

Links & Discussions

Protocol Updates

The interest rate models for the cUSDC and cETH markets on Compound have been adjusted to use 0x0c3f8df27e1a00b47653fde878d68d35f00714c0, modestly lowering borrowing costs.

For users interested in tracking interest rate models for assets on Compound, models are always available on-chain, and viewable on Etherscan (e.g. cUSDC). For a more human-readable format, we recommend this notebook: https://observablehq.com/@jflatow/compound-interest-rates.

Separately, the proposal to change cREP’s collateral factor from 50% to 40% passed the mandated governance timelock, and the change is now live.

Markets Update

Current supply is at ~$145 million from over 15,000 unique addresses. In the past seven days, approximately $19 million (gross) was supplied to Compound. About two-thirds of this volume was DAI and USDC; about one-third was ETH.

Open borrowing is at ~$32 million from over 1,400 unique addresses. In the past seven days, approximately $1.9 million (gross) was borrowed from Compound. About three-quarters of this was volume was DAI and USDC; the remainder was mostly WBTC.

For live figures on Compound please refer to our Markets page.

Tweet of the Week

Loading more posts…