Compound Labs CEO; a new approach for custody in DeFi; Linea testnet
Highlighting the best of the Compound ecosystem. For more updates, join the Compound community on Discord, Twitter, LinkedIn and Comp.xyz.
Encumber - a new approach for retaining custody in DeFi
Encumber is a mechanism to let users separate their ownership of tokens from the right to transfer them.
When a token owner encumbers their tokens to another address, they give it the exclusive right to transfer the tokens while maintaining ownership. This enables token holders to commit to terms within a smart contract without transferring ownership of their tokens to an external address.
By using Encumber, token holders can retain ancillary ownership benefits such as airdrops, governance rights, or access to content and events while still participating in DeFi. Encumber advances the non-custodial ethos of DeFi while streamlining some of the most successful DeFi use cases, such as collateral for lending markets, options contracts, and swaps.
See the full details and example implementation of encumber in the Compound Labs blog.
Jayson Hobby, CEO at Compound Labs
Jayson Hobby, formerly VP of Product, has recently stepped up to be CEO at Compound Labs. Jayson has shaped Compound Labs’ products since their inception, and is excited to be leading the next chapter at Compound Labs.
Robert Leshner has departed Compound Labs to serve as Superstate’s founding CEO. Read more about Superstate’s launch superstate.co.
Follow the latest updates from Compound Lab’s new website at compoundlabs.xyz
Compound on Linea
Compound III is currently live on the Linea testnet. Linea is a ZK-rollup for Ethereum developed by Consensys, which is starting its mainnet alpha release.
During its first week in Linea’s testnet Voyage quests, Compound contracts facilitated over 295,000 transactions.
Join the discussion on the Linea mainnet launch proposal in the forums.
Protocol Governance Updates
Status: Executed July 17, 2023
Proposer: Gauntlet
Voting Results: 629,800 For and 0 Against
Summary: A proposal from Gauntlet to adjust 2 Interest Rate Curve parameters and 2 COMP reward distributions in Ethereum Compound v3 USDC.
Increase Borrow Kink from 90% to 95%
Increase Annual Borrow Interest Rate Slope High from 0 to 0.567
Decrease daily USDC COMP borrow rewards from 481.41 to 381.41
Increase daily USDC COMP supply rewards from 0 to 100
Proposal 167 - Compound V2->V3 Migration Proposal Phase 4
Status: Executed July 17, 2023
Proposer: Gauntlet
Voting Results: 662,296 For and 0 Against
Summary: Of the two options proposed in the recently published Phase 4 migration post, the community has voted in favor of Option 1, whose plan is outlined below. See the forum post for more detail.
Increase v2 USDC Reserve Factor from 7.5% to 15%
Decrease v2 daily USDC supply COMP rewards from 161.20 to 111.20 (-50)
Decrease v2 daily USDC borrow COMP rewards from 161.20 to 111.20 (-50)
Decrease v2 daily DAI supply COMP rewards from 161.20 to 111.20 (-50)
Decrease v2 daily DAI borrow COMP rewards from 161.20 to 111.20 (-50)
Proposal 165 - OpenZeppelin Security Partnership - 2023 Q3 Compensation
Status: Executed July 1, 2023
Proposer: OpenZeppelin
Voting Results: 401,159 For and 0 Against
Summary: OpenZeppelin receives quarterly payments in a lump-sum of COMP for their auditing and security support for Compound III, this proposal was to initiate the next quarterly payment to OpenZeppelin. Based on the last week's average price, this would be $29.31 per COMP for a total quarterly payment of 34,118 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 164 - Top-up COMP Rewards on Compound V3 mainnet contract
Status: Executed June 29, 2023
Proposer: Gauntlet
Voting Results: 613,398 For and 0 Against
Summary: A proposal from Gauntlet to transfer 78,015 COMP (corresponding to 150 days of distribution) from the Comptroller to the Rewards contract for Compound III on the mainnet.
Proposal 163 - Gauntlet <> Compound Incentive Optimization
Status: Executed June 4, 2023
Proposer: Gauntlet
Voting Results: 917,558 For and 0 Against
Summary: A proposal to formalize and expand Gauntlet’s existing work with Compound. Gauntlet will leverage its Incentive Optimization Platform to provide recommendations adjusting incentives across Compound V2 and Comet markets to drive sustainable, efficient growth. The service fee structure is a $300K fixed fee, paid in $COMP tokens, as well as a variable performance fee; this proposal only implements the $300K fixed fee portion. Full proposal and forum discussion.
Proposal 162 - Interest Rate Curve Updates for Ethereum Compound v3 USDC
Status: Executed May 30, 2023
Proposer: Gauntlet
Voting Results: 534,699 For and 0 Against
Summary: A proposal from Gauntlet to adjust 7 IR Curve parameters in the Ethereum v3 USDC market. For more details, see the full forum post here.
Increase Annual Supply Interest Rate Slope Low from 0.0325 to 0.034
Increase Supply Kink from 80% to 95%
Increase Annual Supply Interest Rate Slope High from 0.4 to 0.76
Decrease Annual Borrow Interest Rate Base from 0.015 to 0.01
Decrease Annual Borrow Interest Rate Slope Low from 0.035 to 0.0333
Increase Borrow Kink from 80% to 90%
Decrease Annual Borrow Interest Rate Slope High from 0.25 to 0
Ongoing Discussions
See all the latest discussions on the Compound Community Forum - highlighted proposals below.
Proposer: PGov
Summary: The Linea team from Consensys and PGov are proposing the deployment of Compound III on Linea, a zkEVM incubated by Consensys, to continue broadening Compound’s multi-chain future and establish the lending market as a leading protocol on a promising zkEVM with a robust distribution network.
Last week’s testnet voyage, “DeFi week 1,” was live for 7 days, during this period, Compound Contracts have facilitated over 295,000 transactions. We propose that the Linea deployment starts with an isolated USDC market with crypto majors as collateral. We also propose a conservative approach, after the applicable parties provide market and asset recommendations.
Proposer: Compound Labs
Summary: Compound Labs proposes the deployment of Compound III on Base for the community. Compound Labs has already deployed two instances of Comet (cUSDCv3 and cWETHv3) on the Base Goerli testnet and welcomes the community to start trying them out.
As Base gears up for mainnet launch in 2023, Compound Labs aims to position the Compound protocol as a core DeFi lego on the nascent chain. We believe that Coinbase’s popularity with retail users can onboard a new wave of users to the Compound protocol and community.
stMATIC and MaticX listing on Polygon Compound v3
Proposer: Gauntlet
Summary: The community has expressed interest in adding stMatic and MaticX to Compound v3 Polygon. If the community wishes to list these assets, below is Gauntlet’s analysis, and defer to the community for the risk tolerance here.
Conservative:
Aggressive:
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.