Compound Digest - September 17, 2021
Compound at ETHOnline Hackathon
The Compound Grants Program is sponsoring the upcoming ETHOnline hackathon, which runs from September 17th to October 15th. There will be $12k worth of bounties available to teams who build interesting applications on top of Compound, with $3k going to each winner of the categories below:
Most innovative use of supplying to the protocol
Most innovative use of borrowing from the protocol
Best full-featured, open-source interface to the protocol
Prize pool (must implement the protocol)
You can view this kick-off presentation for inspiration on what to build, and be sure to stop by for a whole day of Compound summits on October 7th. We’re excited to see what you’ll build at the hackathon!
Since the last newsletter, Proposals 59 and 60 both passed the voting stage with broad community support and are now queued.
Status: Queued September 15th, 2021
Proposer: kybx86 (CAP)
Voting Results: 1,527,754 For and 30 Against
Summary: Proposal 59 distributes 6,817,798 DAI from the 16.4 million DAI market reserves to users who were affected by the DAI price spike to $1.30 on Coinbase Pro on November 26th, 2020. This distribution amount covers the 8% liquidation penalty on the 85,222,475 DAI that was repaid during the event. Users do not need to take any action to receive the DAI, as a relayer will claim and distribute the proceeds to each wallet address. For additional information on the November 2020 DAI liquidation event, you can read the original forum post and proposal forum post.
Status: Queued September 15th, 2021
Proposer: Polychain Capital
Voting Results: 1,093,837 For and 151,001 Against
Summary: Proposal 60 allows the community multisig to create a whitelist of contributor addresses that will be able to submit new governance proposals without the existing 65k COMP threshold. The proposed implementation creates a whitelistGuardian, initially set to the community multisig, that is able to add and remove approved whitelisted addresses, as well as cancel proposals from these addresses. Proponents argue that this will reduce the effort and time needed for repeat contributors to submit a governance proposal, ultimately allowing Compound to iterate and improve at a faster rate. Dissenting views by Dennison Bertram and Romain Figuereo highlight the long-tail risks of moving too much of the governance process off-chain and potentially allowing a “friend and family” monopoly to develop. The idea for the governance whitelist was initially proposed in a forum post by Jacob Phillips, with Arr00 leading the engineering effort on the codebase and simulation tests.
See below for highlights from the Compound Community Forum, and join in the discussion:
Add Market: Matic - @LawSirrah provides an update that they deployed cMATIC to mainnet, but are getting an error message on gas fees.
Add Market: FEI - The community discusses adding FEI as a supported market and evaluates potential risks around the “guardian” multisig of the FEI governance system.
New Market Addition: Gemini dollar (GUSD) -- The Gemini team proposes listing GUSD on the compound protocol, and community members ask questions about the token’s liquidity and guardrails against fraudulent minting of new supply.
Compound & Vesper: Compound Island -- The Vesper team requests a $100K COMP grant in order to fund development of a Compound protocol fork that will support a broader range of assets while still being governed by the COMP token. The goal is to allow Compound to iterate more rapidly without transferring the negative impact of risky assets back to the core Compound markets.
Compound Grants Program: Lessons and Next Steps - Larry Sukernik provides a recap on the accomplishments of the grants program, and outlines improvements for a new version yet to be launched.
Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.
As a reminder, one of the best ways to participate in, and contribute to, the Compound ecosystem is to complete outstanding Request For Proposals (RFPs). The Compound Grants Program is offering substantial grants to individuals and organizations who work on the topics listed below. Have an idea in mind that's not included on the list? Feel free to apply with your own ideas here!
RFP 1: Decentralized batching contract | $25k
RFP 2: Voting with COMP collateral | $50k
RFP 3: Bringing Compound to L2's and other chains | $50k
RFP 4: Adding support for new assets on Compound | $12.5k
RFP 5: Gas optimizations | TBD
RFP 6: Improvements to the liquidations process | $50k
RFP 7: Uniswap V3 management platforms as collateral | $25k
RFP 8: Balancer V2 liquidity as collateral | $25k
RFP 9: Open source Compound Interface | $50k
RFP 10: Ripcord wallet | TBD
RFP 11: Governance/Voters rewards | TBD
RFP 12: cToken Cleanup | $250k
RFP 13: cToken Interest Rate Model Changes | $100k
RFP 14: Gas Savings for cToken and Comptroller contracts | $100k
RFP 15: Dynamic COMP reward distribution | $100k
RFP 16: Migrate legacy cTokens | $50k
RFP 17: Deploy upgradeable cETH contract and migrate users to it | $50k
RFP 18: Uniswap V3 liquidity as collateral | $100k
RFP 19: Interest rate curve research | $5k
RFP 20: Optimism Starport for Compound Gateway | $100k
Developer Community Call Recap
Current supply on Compound is at $19.3B from 295k unique addresses. 32% of this supply volume is ETH, 23% is USDC, and 35% is DAI. (source).
Open borrowing is at $8.2B from 8.8k unique addresses. 43% of this borrowing volume is USDC, 41% is DAI, and 6% is USDT. (source).
For live figures please refer to our Markets page.
Image Source: IntoTheBlock
Links & Discussions
Compound Labs announces that it has open-sourced the code for the original app interface under the GPLv3 license, allowing the community to improve, maintain, or fork the front-end.
A16Z launches a Token Delegate Program where individuals and entities can apply for COMP delegations in order to participate in Compound governance.
KeyFi, a platform for tracking, swapping, and staking tokens, integrates Compound’s borrowing functionality into a new product launch.
The New York Times features Compound as an example of an innovative DeFi protocol challenging the status quo in traditional finance.