COMP Distribution, Hack Money Recap, Constant Q&A
Compound Digest - June 03, 2020
Highlighting the best of Compound & the DeFi ecosystem. For more updates, join our community on Discord, Twitter, and Reddit.
COMP Token Distribution
Since the announcement of Compound’s governance token, the most frequently asked question has been: how will COMP be distributed to the community?
The answer is now fully detailed in this blog post: Expanding Compound Governance.
To summarize, a portion of all COMP tokens will be moved into a reservoir contract. From there, they’ll be automatically distributed to each user of Compound, based on proportional use of the protocol by supplying and borrowing. Over time, users will accumulate more and more COMP, and increase their ability to participate in protocol governance.
Once the distribution begins, you can track the progress on the COMP Distribution dashboard.
Guardian Functionality Abdicated
Since October 2019, the protocol’s new Governance system has been tested with the ability to revert to manual administration in an emergency. As of June 1st, 2020, this functionality, known as Pause Guardian, was disabled. This is one of the last steps towards full decentralization of Compound - complete control of the protocol has been handed over to COMP token holders and their delegates.
ETHGlobal’s Hack Money Conclusion
Thank you to all of the participants of ETHGlobal’s first virtual hackathon, Hack Money! We saw 27 Ethereum projects that integrated the Compound protocol. It was very difficult for the judges to select winners from the set of fantastic submissions.
The co-winners of the 2000 cUSDC Compound borrow bounty are:
cChannels - A crypto “bar-tab” type of payment system that uses the Compound protocol for interest and borrowing with ETH and DAI.
Atomic Ninja - An atomic Ethereum transaction batcher with a drag-and-drop user interface for aggregating various DeFi systems.
Congratulations buidlers! Here are some of our favorite runner-up submissions:
Medici - An interest-earning wallet for digital cash.
Maximus - A community owned/governed version of MakerDAO that enables supplying/borrowing with Compound.
tCDP - Automated movement of assets amongst DeFi protocols to avoid liquidation fears in over-collateralized borrowing.
Defido2 - Hardware wallet CLI that has functions for DeFi, which include supplying ETH and DAI to Compound, as well as borrowing.
NFWallets - A browser based wallet that enables users to utilize much of DeFi.
Suicide Kings - A no-loss ERC1155 game where players vote to win interest generated with Compound.
Other hackathon submissions that used the Compound protocol can be further explored on the ETHGlobal website.
Constant is a secured, P2P lending platform where customers can earn interest on fiat or crypto using Ethereum protocols like Compound as well as stake, and borrow assets. Last week, Constant introduced a brand new feature for earning 10% APY on BTC, ETH, and BNB by providing liquidity to DEX partners in exchange for a portion of transaction fees.
Additionally, Constant has recently updated to a lending pool model for their crypto-backed lending/investment product to speed up loan matching times.
What went into building Constant?
We started out in January of 2019 as an Ethereum-based stablecoin project. Just a handful of devs and designers looking to build a more useful money for people around the world.
Once we learned about DeFi protocols like Compound, we quickly realized crypto could fix the collateral problem in the P2P lending industry. People love the rates of P2P lending but were often burned by borrower defaults. Either there was no collateral or it was illiquid (property, for example). We used a coin minting protocol and operated solely as a DeFi lending protocol on the Ethereum network in early 2019. We soon began expanding into other chains.
We thought, why should blockchains supporting smart contracts be the only ones with access to crypto loans? There’s been a lot of talk about cross-chain integrations but progress is slow. People want access to crypto loans right now. We dropped our DeFi title in exchange for greater exposure to fiat investors and crypto borrowers. We weren’t strictly locked into crypto anymore so we could get creative.
What are the growth opportunities for a crypto project like Constant in these uncertain times?
We’re in a unique market position with a foot solidly in both the US and Southeast Asia. While the US is slowly opening to the possibilities of blockchain and fintech, both have reached a fever pitch in Southeast Asia. We think our customers greatly benefit from a company bridging both worlds.
For example, one of our operational offices is in Vietnam. The top companies in the world are rushing here as a jumping-off point for the rest of ASEAN. Lots of exciting new blockchain projects and fintechs are popping up here every month and we can talk directly to them.
Peter Upton, Community Manager at Constant
More Links & Discussions
As part of the community’s effort to gradually deprecate SAI, proposal 005, will bring the SAI collateral factor from 55% to 45%
CoinDesk’s article on Compound’s Approach to DeFi Governance Starts With Giving Away COMP Tokens
Compound’s supply and borrowing dynamics show the development of the Ethereum DeFi space
A Python guide for creating a REST API for Compound Finance Smart Contracts
The Block’s article Compound outlines plan for distributing its governance token to DeFi protocol users
Top 5 ETHGlobal HackMoney DeFi Virtual Hackathon Winners
How to Decentralize a Crypto Project Without Harming Security, Unchained podcast featuring Robert Leshner
Build Your Own Ethereum API with Infura and Compound video workshop, by Consensys Academy
Current supply is at ~$133 million from ~19,600 unique addresses. In the past seven days, approximately $42 million (gross) was added to Compound, in almost 3,100 transactions. About 47% of this volume was USDC, 41% was DAI, 6% was ETH, and 5% was USDT.
Open borrowing is at ~$20 million from ~1900 unique addresses. In the past seven days, approximately $7.6 million (gross) was borrowed from Compound. About 59% of this volume was DAI, 22% was ETH, and 13% was USDC.
For live figures please refer to our Markets page.