Compound III ETH Market is Live
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Compound III ETH Market is Live
The Compound III ETH market is now live, and offers the most streamlined & efficient ETH borrowing experience in DeFi for stETH and cbETH collateral. Users can borrow up to 90% collateral value of stETH and cbETH.
Since launching on January 24th, the Compound III ETH market has over 9,166.96 ETH in borrow against 13,558.95 ETH of collateral as of this newsletter.
See the current rates for the ETH market, or try supplying or borrowing on Compound III here.
Compound Grants 2.0 is Now Accepting Applications
The Compound Grants Program (CGP) 2.0 is now live and accepting new applications. Managed in partnership with Questbook, CGP 2.0 aims to strengthen the builder community, and more effectively identify, attract and fund projects by delegating the capital allocation to members of the community rather than a central committee.
An approved fund of $800,000 will be allocated across 4 domains - strategic areas of focus for which the foundation wants to disburse grants. You can apply and find more details on each of the domains on Questbook here:
See full details on the grants program in the executed proposal here, or feel free to drop by with any questions in the grants channel on Discord.
Compound Thesis - Moody’s Outlook on the Digitalization of Financial Markets
On the latest episode of Thesis, we chat with Fabian Astic, Managing Director, Head of DeFi and Digital Assets at Moody's Investors Service on their outlook for digital assets in the upcoming year on:
1️. The digitalization of financial markets - more efficient settlements infrastructure, new digital asset types & mechanisms for increased exposure
2. Balancing the benefits of blockchain transparency vs cybersecurity risk and privacy needs for institutions
3. Enhancing financial inclusion by reducing barriers to entry for businesses and individuals
4️. How regulators are progressing to implement frameworks across the globe
“If all the values of a given report are in compliance with pre agreed amounts… settlement times can be reduced from several days to just a few minutes or even a few seconds, which can in turn improve customer service and reduce the cost of counterparty risk management and also ultimately a bunch of other costs.”
Watch the full episode, or listen and subscribe on YouTube, Spotify, or Apple Podcast.
Protocol Governance Updates
Summarized below are highlighted proposals since our last newsletter - find all proposals at https://compound.finance/governance.
Recent Proposals
Proposal 147 - Risk Parameter Updates for 3 Compound V2 Assets
Status: Review
Proposer: Gauntlet
Summary: A proposal to adjust three (3) risk parameters (collateral factor & borrow cap) across three (3) Compound V2 assets.
Proposal 146 - Increase cbETH Supply Cap in cWETHv3
Status: Active
Proposer: Compound Labs
Voting Results: # For and 0 Against
Summary: Set supply cap for cbETH on Comet via Configurator to 20000; the associated forum post for this proposal can be found here.
Proposal 145 - Risk Parameter Updates for USDC Comet Market
Status: Executed January 30, 2023
Proposer: Gauntlet
Voting Results: 740,214 For and 0 Against
Summary: Increase the supply cap of COMP on the Comet USDC market from 600,000 COMP to 900,000 COMP.
Proposal 144 - Initialize cWETHv3 on Ethereum
Status: Executed January 24, 2023
Proposer: Compound Labs
Voting Results: 716,821 For and 0 Against
Summary: This proposal takes the governance steps recommended and necessary to initialize a Compound III WETH market; upon execution, cWETHv3 will be ready for use. Simulations have confirmed the market’s readiness, using the Comet scenario suite.
This proposal initializes the market with a supply cap of 64,500 wstETH and 7,100 cbETH, and 38.7 COMP per day allocated to WETH suppliers.
Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal 143 - Compound UAV v3 Upgrade
Status: Executed January 17, 2023
Proposer: Chainlink (via GFX Labs)
Voting Results: 495,502 For and 0 Against
Summary: GFX Labs is proposing on behalf of Chainlink to upgrade the Compound II UniswapAnchoredView (UAV) Oracle. The upgrade will update the UAV’s reference prices from Uniswap V2 pools to Uniswap V3 pools. Forum Post
Proposal 141 - Risk Parameter Updates for 5 Collateral Assets
Status: Executed January 2, 2023
Proposer: Gauntlet
Voting Results: 618,747 For and 0 Against
Summary: A proposal to adjust five (5) risk parameters (collateral factor & borrow cap) across five (5) Compound V2 assets. Full proposal and forum discussion.
Proposal 140 - Risk Parameter Updates for USDC Comet Market
Status: Executed December 19, 2022
Proposer: Gauntlet
Voting Results: 471,508 For and 0 Against
Summary: A proposal to adjust two (2) parameters for two (2) Compound V3 assets on the USDC market. Increase the supply cap of UNI on the Comet USDC market from 1,250,000 UNI to 2,300,000 UNI; and decrease COMP liquidation factor on the Comet USDC market from 93% to 88%.
Proposal 139 - OpenZeppelin Security Partnership - 2023 Q1 Compensation
Status: Executed December 16, 2022
Proposer: OpenZeppelin
Voting Results: 1,182,845 For and 0 Against
Summary: Going forward, we will receive our quarterly payments in a lump-sum. Based on the last week's average price, this would be $38.20 per COMP for a total quarterly payment of 26,179 COMP equaling $1M per the original agreement. This COMP will be transferred from the Timelock's existing balance. More detail in this forum post.
Proposal 138 - Reserve Maintenance
Status: Executed December 15, 2022
Proposer: Compound Labs
Voting Results: 455,545 For and 1 Against
Summary: First, the proposal withdraws the reserves of deprecated markets: SAI, REP, FEI, and WBTC (legacy) to the Timelock, in four actions. Next, the proposal redeems the Timelock’s cDAI and cUNI for DAI and UNI in two actions.Then, the proposal redeems the balance of SAI held by the Timelock for WETH through MakerDAO’s SaiTap contract, by calling approve and then redeeming. Last, the proposal migrates the balance of REP held by the Timelock to REPv2, by calling approve and then migrating.
This proposal is a series of minor maintenance actions from the list of Protocol Maintenance Tasks.
Ongoing Discussions
See all the latest discussions on the Compound Community Forum - highlighted proposals below.
Compound V2 → V3 Migration Planning
Proposer: pauljlei
Summary: V3 offers capital efficiency and risk management enhancements compared to V2, including additional parameters such as supply caps. As such, it is valuable for the community to align on the goals of migration and the risk tradeoffs.
What should the community define as the goals and non-goals of migration?
Is the goal to incentivize user position migration to V3 as much and as fast as possible, or should V2 co-exist as an “equally attractive” protocol?
Should the protocol care about losing recursive borrowers on V2?
It would be a sub-optimal outcome if the protocol’s actions result in just losing V2 TVL instead of accelerating V2 → V3 migration. These outcomes are difficult to predict, but how can the community best minimize the chances of this risk of losing TVL?
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.