Highlighting the best of the Compound ecosystem. For more updates, join the Compound community on Discord, Twitter, LinkedIn and Comp.xyz.
Compound III
At the end of June, Compound Labs released a code repository to the Compound community, which we hope can form the basis of a multi-chain deployment strategy: comet, which the community has been referring to as Compound III.
Compound III is designed with borrowers in mind, to be capital efficient, gas efficient, safe, and simple to govern. Highlights of the major changes listed below:
Compound III deployments feature a single borrowable (interest earning) base asset. All other assets are collateral. This reduces risk, and can improve capital efficiency.
There are separate borrowing collateral factors, and liquidation collateral factors. This protects borrowers from early liquidation, and can improve risk management.
Supply/borrow interest rate models can be decoupled from one another; governance has full control over economic policy.
We look forward to working with the community to finish auditing the protocol, and compiling our learnings from the current testnet ahead of beginning deployments to other EVM chains.
Check out the Compound III documentation, and join the forum discussion on comp.xyz.
Compound In the News
Messari - State of Compound Q2 2022
Axios - Compound's founder is unworried about DeFi defaults
Coindesk - Celsius Reclaims $172M Collateral From Aave, Compound
Pantera Capital - DeFi Worked Great
The Defiant - Compound Goes Multi-Chain in Major Upgrade
How on-chain data powers Nansen’s Treasury strategy - Thesis Episode 1
This week, we hosted Compound's first episode of Thesis, discussing the intersection of crypto and capital markets with industry thought leaders.
In this episode, we spoke with Morten Fylkesnes, Treasury Manager at Nansen. Prior to Nansen, Morten was a trader at Norges, the largest sovereign wealth fund in Norway with >$1T AUM.
Here’s Morten’s take on how firms can start getting more comfortable with digital assets:
“You don't have to be an investment fund or a hedge fund or a VC to invest in crypto. It's become this market where you have fixed income and an equity market inside digital assets… if you take the time to understand and get comfortable with the new types of risks… you have a great opportunity to outperform by taking very limited market risk.”
Watch the full replay on LinkedIn.
Protocol Governance Updates
Summarized below are highlighted proposals since our last newsletter - find all proposals at https://compound.finance/governance.
Recent Proposals
Proposal 112 - Return Accidentally Sent Funds #3
Status: Executed July 11, 2022
Proposer: Arr00
Voting Results: 675,681 For and 0 Against
Summary: Following the two proposal which returned accidentally sent funds, this proposal will return 90% of the accidentally sent WBTC to a user that sent the WBTC to the Comptroller here. Finally, the proposal was audited and signed off by Open Zeppelin as can be verified here. Discussion.
Proposal 111 - Risk Parameter Updates for 2 Collateral Assets
Status: Executed July 4, 2022
Proposer: Gauntlet
Voting Results: 686,289 For and 0 Against
Summary: Updated Risk Parameters aligning with Moderate Risk Level - increasing collateral factor for cUSDC to 85.5%; cDAI to 83.5%. For more details, please see Gauntlet's Parameter Recommendation Methodology and Gauntlet's Model Methodology.
Proposal 110 - OpenZeppelin Security Partnership - 2022 Q3 Adjustment
Status: Executed July 2, 2022
Proposer: OpenZeppelin
Voting Results: 696,327 For and 0 Against
Summary: As outlined in the original proposal, at the start of every quarter OpenZeppelin will create a proposal to update the service fee payment in accordance with the formula outlined in the proposal. The dollar value of $1M in COMP remains the same as the original agreement. More detail in this forum post.
Ongoing Discussions and RFPs
See the Compound Community Forum to see and join in the latest discussion.
As a reminder, one of the best ways to participate in, and contribute to the Compound ecosystem is completing outstanding Request For Proposals (RFPs)
Click here for a recap of our most recent Developer Community Call, discussing ongoing protocol and application development, and listen to the audio recording here.
Markets Update
Current supply on Compound is at $3.7B from 301K unique addresses. 27% of this supply volume is USDC, 22% is ETH, and 20% is DAI. (source).
Open borrowing is at $895MM from 9.0K unique addresses. 36% of this borrowing volume is USDC, 29% is USDT, and 28% is DAI. (source).
For live figures please refer to our Markets page.
Image Source: IntoTheBlock