Compound Grants Funds Batch 2, KeeperDAO Introduces kCompound, Governance Updates
Compound Digest - April 23, 2021
Grants Committee Funds Batch 2
The Compound Grants Program recently announced its second batch of funded grants. The Committee funded 6 additional projects for a total of $98k, bringing the total number of grants to 13 projects and total funding to $286k. A list of the newly funded projects is provided below.
Grant Size: $7.5k
Description: Boardroom is an integrated governance and management platform that helps decentralized projects collaborate.
Grant Size: $10k
Description: To build a standalone dashboard that shows (i) historical APY's by asset, (ii) average APYs over specific time periods, and (iii) comparison between APYs for different assets.
Applicant: Flipside Crypto
Grant Size: $25k
Description: Flipside Crypto allows users to build powerful dashboards that show all sorts of on-chain data. Using Flipside's platform, Compound community members will be able to monitor network health in real-time.
Grant Size: $15k
Description: Educational curriculum that explains what Compound is, how it works, and why users should use it! Content is tailored for Japanese speakers.
Applicant: Hayden Shively
Grant Size: $2.5k
Description: Easy-to-use migration tool for users to switch to newly upgraded cToken markets (specifically cWBTC for now).
Grant Size: $37.5k
Description: Fluidity is a new stablecoin that rewards people for using it. Under the hood, Fluidity is powered by Compound.
The Grants Committee will announce the winners of the Dashboard Contest in the next few days and is still taking submissions for the Meme Contest, so stay tuned for further updates. If you have an idea that will add value to the Compound community, get started by reading the program overview and consider applying for a grant by filling out this form on the Compound Grants website. You can also view the Request for Proposals page to get ideas on what to build.
KeeperDAO Integrates Compound
KeeperDAO, an on-chain liquidity underwriter, recently announced a new liquidation system on top of the Compound protocol called kCompound that will go live in May. kCompound utilizes a Just-In-Time Underwriter (JITU) that provides a buffer to at-risk borrowing positions, which hides the positions from the open ecosystem of liquidators. If the health of the borrowing position improves, the JITU can withdraw the buffer. If the health of the borrowing position declines, the JITU can liquidate the position and distribute the proceeds between the borrower, the keeper, and the KeeperDAO treasury.
The kCompound system also introduces an ERC-721 compatible kCompound token that allows borrowers to easily transfer positions between various Ethereum addresses and interact with other DeFi protocols. Systems like kCompound have the potential to better protect borrowers against unwanted liquidations and make the borrowing experience even more composable.
Since the last newsletter, Proposal 43 passed through the governance system with overwhelming support from the community.
Status: Executed April 18th, 2021
Proposer: Geoffrey Hayes
Voting Results: 1,367,84 For and 5,000 Against
Summary: Proposal 43 adds a two-day formal analysis period before COMP holders can vote on a new proposal. This analysis period has been heavily requested since the early days of the governor alpha system and gives the community additional time to audit the proposal for errors, move COMP to a new address before voting, and evaluate the broader externalities and impacts of the proposed upgrade. This is the first proposal to upgrade the new Governor Bravo contract and showcases the power of being able to tweak and optimize individual governance parameters.
See below for highlights from the Compound Community Forum, and join in the discussion:
Oracle Infrastructure: Chainlink Proposal - The community discusses adding Chainlink as the primary price oracle, anchored to within 15% of Uniswap prices.
Weighted Algorithmic Compound Distribution - @TylerEther suggests assigning every cToken a COMP distribution weight and a global COMP distribution rate target instead of each cToken having its own distribution rate target.
Add Market: LINK - The community continues the discussion around adding LINK as the next supported market on Compound with a 0% Collateral Factor and a CompSpeed of 0.0014625, which would preserve the total COMP per day distribution.
FRAX Listing Proposal - @Metalface proposes listing FRAX, a fractional-algorithmic stablecoin, as a supported asset on Compound.
Should Compound Retroactively Airdrop Tokens to Early Users? - @rleshner provides a list of questions for the community to come to consensus on regarding rewarding early users with COMP.
1INCH Listing Proposal [Stay Tuned] - @1inchnetwork proposes adding the 1inch governance token as a supported asset on Compound.
Grant to PoolTogether for Launch of Tether Prize Saving Pool - Leighton Cusack proposes a grant of 1,000 COMP that will be used as prizes to help bootstrap the PoolTogether Tether prize pool.
Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.
Developer Community Call Recap
The Compound community held a Developer Community Call on Wednesday to discuss ongoing protocol and application development. You can access an audio recording of the call here, or listen to it on your favorite podcast platform.
Current supply on Compound is at $15.7B from 287k unique addresses. 28% of this supply volume is ETH, 27% is USDC, and 18% is DAI. (source). On April 10th, Compound became the first DeFi protocol in history to break $10B in Total Value Locked (TVL), with TVL currently sitting at $8.5B.
Open borrowing is at $7.3B from 8k unique addresses. 51% of this borrowing volume is USDC, 34% is DAI, and 6% is USDT. (source).
For live figures please refer to our Markets page.
Image Source: IntoTheBlock
Links & Discussions
Compound Labs CEO, Robert Leshner, joins the Celo Kuneco event to discuss the evolution of DeFi.
Compound Labs Business Development Associate, Nick Martitsch, provides analytics on the growth of the Compound protocol in the latest edition of Our Network.
Compound Labs Director of Protocol, Jared Flatow, discusses building DeFi applications on the Software Engineering Daily podcast.
IntoTheBlock reports on the Compound breaking $10B in TVL.
Compound Labs Business Development Associate, Nick Martitsch, joins a Bitcoin Suisse event to discuss the latest topics and trends in DeFi.
Tidal Finance launched a testnet that allows users to buy cover on DeFi protocols like Compound, with a novel capital efficiency mechanism for purchasing coverage on multiple protocols at once.