Compound launches on Base; Native USDC on Arbitrum; Net interest rates visualization
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Compound launches on Base; Native USDC on Arbitrum; Net interest rates visualization
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Compound launches on Base
Compound is now live on Base, Coinbase’s recently launched layer 2 chain.
Compound currently features a bridged USDC market, and ETH market on Base.
ETH and cbETH can be used as collateral to borrow bridged USDC, or cbETH to borrow ETH in each respective market.
Native USDC on Arbitrum
The native USDC market on Arbitrum is live on Compound.
Users can transfer native USDC from the Arbitrum market to different chains via Circle’s cross-chain transfer protocol (CCTP), without needing to bridge back to Ethereum.
The bridged USDC.e Arbitrum market will continue to operate, while Arbitrum develops its native migration solution.
Net interest rates now displayed in Compound
The Compound dashboard and markets pages now shows net interest rates, inclusive of token distributions. Hovering over the APR in the dashboard reveals a visual breakdown to help users understand how net rates are calculated.
A quick walkthrough in an example below for the USDC market:
4.23% Net Borrow APR for USDC:
6.41% interest (paid to suppliers in USDC), subtracting 2.18% interest (distributed by the protocol in COMP)
6.81% Net Supply APR for USDC:
6.24% interest (paid by borrowers in USDC), adding 0.56% interest (distributed by the protocol in COMP)
Note the token amount distributed is based on its value determined by Chainlink’s price feed, on a block-by-block basis. Due to token price fluctuations, the tokens distributed may not reflect the original interest rate.
Protocol Governance Updates
Proposal 179 - Add stMATIC as Collateral to USDCv3 Polygon Market
Status: Active
Proposer: Penn Blockchain
Voting Results: 75,555 For and 0 Against
Summary: For Compound, stMATIC offers a good collateral option because of its extensive use and composability on Polygon. Forum discussion.
Proposal 178 - Initialize native USDC market cUSDCv3 on Arbitrum
Status: Executed September 1, 2023
Proposer: Compound Labs
Voting Results: 555,668 For and 0 Against
Summary: This proposal takes the governance steps recommended and necessary to initialize a Compound III USDC (native USDC on Arbitrum) market on Arbitrum. Simulations have confirmed the market's readiness, as much as possible, using the Comet scenario suite. Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal 177 - [Gauntlet] 2023-08-21: Polygon USDC - Risk Parameter Updates
Status: Queued Aug 29, 2023
Proposer: Gauntlet
Voting Results: 625,672 For and 0 Against
Summary: A proposal from Gauntlet to adjust one risk parameter in the Polygon USDC comet: Increase WBTC supply cap from 1k tokens to 1.5k tokens For more details, see the full forum post here.
Proposal 176 - [Gauntlet] 2023-08-14: Ethereum WETH - Risk Parameter, IR Curve, & Incentive Updates
Status: Executed Aug 22, 2023
Proposer: Gauntlet
Voting Results: 554,038 For and 0 Against
Summary: Gauntlet recommends the following changes to the Compound III Ethereum ETH market:
Increase storefront price factor from 50% to 100%
Decrease wstETH liquidation penalty from 5% to 2.5%.
Decrease cbETH liquidation penalty from 5% to 2.5%.
Decrease Annual Borrow Interest Rate Slope Low from 0.051 to 0.037.
Increase COMP daily supply distribution from 38 to 70.
For more details, see the full forum post here.
Proposal 174 - Initialize cWETHv3 on Base
Status: Executed August 19, 2023
Proposer: PGov
Voting Results: 897,879 For and 0 Against
Summary: This proposal takes the governance steps recommended and necessary to initialize a Compound III WETH market on Base. Simulations have confirmed the market's readiness, as much as possible, using the Comet scenario suite. Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal 173 - [Gauntlet] 2023-08-07: Arbitrum USDC - Reward Updates
Status: Executed Aug 18, 2023
Proposer: Gauntlet
Voting Results: 810,026 For and 0 Against
Summary: Gauntlet recommends the following change to Arbitrum USDC rewards: Decrease daily COMP supply rewards from 34.73 to 10.
For more details, see the full forum post here.
Proposal 172 - Add MaticX as Collateral to USDCv3 Polygon Market
Status: Executed August 14, 2023
Proposer: Penn Blockchain
Voting Results: 641,916 For and 0 Against
Summary: For Compound, MaticX offers a good collateral option because of its extensive use and composability on Polygon. Forum discussion.
Proposal 171 - Initialize cUSDbCv3 on Base
Status: Executed Aug 12, 2023
Proposer: Compound Labs
Voting Results: 645,643 For and 0 Against
Summary: This proposal takes the governance steps recommended and necessary to initialize a Compound III USDbC (bridged version of USDC on Base) market on Base. Simulations have confirmed the market's readiness, as much as possible, using the Comet scenario suite. Further detailed information can be found on the corresponding proposal pull request and forum discussion.
Proposal 170 - [Gauntlet] 2023-07-24 Pause supply for Compound v2 Tail Assets
Status: Executed July 31, 2023
Proposer: Gauntlet
Voting Results: 810,026 For and 0 Against
Summary: Gauntlet recommends pausing supply for the following collateral assets on Compound v2:
cAAVE
cCOMP
cLINK
cSUSHI
cUNI
For more details, see the full forum post here.
Status: Executed July 31, 2023
Proposer: Gauntlet
Voting Results: 942,537 For and 0 Against
Summary: A proposal from Gauntlet to adjust 4 parameters for 4 Ethereum Compound v3 USDC assets.
Increase WETH supply cap from 350k tokens to 500k tokens.
Increase WBTC supply cap from 12k tokens to 18k tokens.
Increase UNI supply cap from 2.3M tokens to 6M tokens.
Increase LINK supply cap from 1.25M tokens to 4M tokens.
For more details, see the full forum post here.
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 (~$22,800/day)
Increase daily USDC COMP supply rewards from 0 to 100 (~$6,000/day)
For more details, see the full forum post here.
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)
Ongoing Discussions
See all the latest discussions on the Compound Community Forum - highlighted proposals below.
Draft for Compound Growth Program
Proposer: sharp (Alpha Growth)
Summary: We at AlphaGrowth believe that the Compound Protocol will benefit by expanding to more blockchains and supporting more money market pools. We plan to help Compound Community map out and execute a strategy to increase the utility of the Compound Protocol.
[Alastor & w3s] Compound Strategy & Growth Proposal
Proposer: w3s
Summary: Alastor 3 and web3 Studios 1 (“w3s”) propose to collaborate on the revitalization of Compound DAO through strategy and growth initiatives and establishing accountability structures. Leveraging our multidisciplinary team with experience contributing to projects such as Uniswap, Lido, and others, we aim to re-establish Compound as a leader in the DeFi lending market.
Click here for a recap of our most recent Developer Community Call, discussing ongoing protocol and application development.