DAOs using Compound, DeFi Score and Kyber Virtual Hackathon

Compound Weekly, 9/23

Sep 24, 2019

Welcome to Compound Weekly, where we present updates from the Compound community & ecosystem. To learn more and contribute your updates, please join over 4,000 other members in our community Discord.

Aragon and Compound

Empower the DAO had a comprehensive call yesterday with the Compound Finance community. It featured Chris Hobcroft and Will Griffiths explaining the power of leveraging DAOs to build autonomous organizations. The Compound Aragon app can be installed in any DAO created using Aragon's DAO framework. It empowers a DAO to decide to supply tokens to Compound, and earn the associated interest. DAOs that directly integrate Compound provide a compelling value proposition and we will be watching as more organizations begin to leverage Compound over the upcoming months. Here is a brief interview with Chris:

What does Empower The DAO offer?

Empower The DAO offers a user-friendly way for participants in a DAO to propose for their DAO to supply or redeem tokens to or from Compound. It leverages Aragon's DAO framework for voting and permissions, to empower a DAO to interact with Compound's protocol, such that a DAO can democratically decide whether to supply tokens (such as DAI), and earn the associated interest.

This decentralizes the decision-making process to multiple actors and enables the crowd-sourcing of wisdom. Empower The DAO have also built integrations with Livepeer, Uniswap and ENS, to empower any Aragon DAO to interact with these protocols.

What is the value of creating a DAO and who should consider using one?

A Decentralized Autonomous Organization is an on-chain formalized structure for how groups of individuals can organize themselves to make decisions and allocate resources.

DAOs are being used as formal structures for new startups in the crypto and blockchain space, and enable full transparency of decision-making processes and openness for participation. Anyone who is working in a team with other individuals on projects funded using crypto should consider using a DAO to govern how the funding is allocated.

What is a brief overview of how the Compound integration works?

The Compound Aragon App can be installed in any DAO created using Aragon's DAO framework. It empowers a DAO to decide to supply tokens to Compound, and earn the associated interest.

All decisions about whether to supply or redeem can be made democratically, thus sharing the responsibility among many, instead of relying on centralized permissioned actors.

When will you go to mainnet?

The contracts will be going into security audit on September 23rd, and the target date for release to mainnet is October 20th.

More:
- View the code on Github

- Join the Empower The DAO Telegram community

New ConsenSys DeFi Score

The DeFi Score is a new framework from ConsenSys for assessing risk in permissionless lending platforms. It is a single, consistently comparable value for measuring protocol risk, based on factors including smart contract risk, collateralization, and liquidity.

Robert Leshner says, “This will guide the community in evaluating the risk of open financial products. It heralds a real industry ahead.”

More:

- Read the whitepaper and view the Github

- Join the DeFi Score Telegram group

Kyber Virtual Hackathon

Kyber continues to move forward on their online hackathon that features $42,000 in total prizes. Compound is a sponsor and is offering $5,000 USD in cDAI for projects that leverage the protocol. The hackathon will continue for another month until October 21st.

Kyber Spotlights Compound in their recent article for the upcoming hackathon including numerous ideas on what to build.
View the hackathon overview and join the Kyber hackathon Discord. Check out the Compound section there.

Updates & Press

Zero to DeFi – A beginner’s guide to earning passive income via Compound Finance from DeFi Pulse

Comprehensive Guide to Ethereum featuring Compound by David Hoffman

The Block covers the Linen app powered by Compound

Thoughts

Jason Choi @mrjasonchoi

Important to note that DeFi's growth from August TD is mostly drive by projects other than Maker. August to date value locked: - @synthetix_io: +$25M (50% growth) - @compoundfinance: +$30M (37% growth) - @MakerDAO: +$16M (5.4% growth)

Spencer Noon @spencernoon

5/10. ETH locked in #DeFi is at ATHs and USD locked in DeFi has rebounded sharply from local lows in August. This signals confidence in Ethereum's open financial ecosystem. https://t.co/UATj9kbFh2

Jason Choi speaks about 37% monthly growth from Compound

Markets

Total supply is currently at $160 million from 11,700 suppliers. Total borrowing is at $42 million from 1,400 borrowers.

This week’s rise in borrowing was largely driven by ETH borrowing following the rally in ETH/USD up to ~$220 mid-week. ETH/USD is now trading closer to ~$200. We saw similar (though smaller) borrowing action on ZRX mid-week, as ZRX/USD rallied from ~$0.16 up to ~$0.25, and is now trading ~$0.21.

The three largest suppliers this week were for 1.9 million USDC; 900,000 USDC; and 500,000 USDC and 200,000 DAI. The three largest borrowers this week were for 14,000 ETH and 500,000 ZRX; 5,000 ETH; and 600,000 USD.

For live figures please refer to our /markets page.