DeFi State of the Union Recap, Treasury now supports international wires
Compound Digest - May 26, 2022
Highlighting the best of the Compound ecosystem. For more updates, join the Compound community on Discord, Twitter, and Comp.xyz.
DeFi State of the Union Recap
At Permissionless last week, Compound CEO and Founder, Robert Leshner, discussed what’s next for DeFi alongside panelists from other blue-chip protocols - Uniswap, Aave, and Synthetix.
These protocols were all built in prior crypto bear markets - and the panelists agreed that building and innovating is the way out of bear markets. Conditions for the next bull market require people to be excited around new ideas, and greater institutional adoption of crypto and DeFi.
Compound is focused on building the infrastructure for institutions to easily and safely on-ramp capital into DeFi. Compound Treasury has seen immense growth since its launch in July 2021, and is working to accelerate institutional DeFi adoption.
Compound In the News
Blockworks - Uniswap COO: Now Is the Time for Community Members To Drive Growth
CoinDesk - Compound’s Enterprise Arm Receives S&P Credit Rating in DeFi First
Treasury now supports international wires
Compound is excited to offer Treasury’s institutional DeFi platform globally. Treasury Accounts can now be funded and paid out with bank accounts outside of the US, where supported by our partner Circle.
Adding to our support for international entities, clients will now be able to receive USD wire payouts in addition to on-chain USDC transfers. Compound Treasury is building the global infrastructure for institutions to easily access the benefits of DeFi.
Treasury receives S&P credit rating
Earlier this month, Compound Treasury received a B- credit rating from S&P Global Ratings. This makes Compound Treasury the first institutional DeFi offering to be rated by a major credit rating agency, and signals tremendous progress in the crypto industry’s maturity, as traditional institutions begin to judge the risks of digital asset powered financial offerings.
As part of ongoing discussions with S&P, Compound Treasury’s ratings could be upgraded in upside scenarios such as greater regulatory clarity for the digital asset industry, or a longer track record of stable performance.
Find Compound Treasury’s S&P Credit Ratings announcement and link to the full report here.
Protocol Governance Updates
Summarized below are highlighted proposals since our last newsletter - find all proposals at https://compound.finance/governance.
Recent Passed Proposals
Proposal 105 - Grant request for launching Compound with Aztec Connect
Status: Executed May18th, 2022
Proposer: 0xeda2...a36a
Voting Results: 570,883 For and 0 Against
Summary: With Aztec Connect, users can deposit into and borrow from Compound with significant gas savings and privacy by default. This quarter, the integration will go live on zk.money. Aztec is requesting a $100,000 grant to subsidize deposits into Compound - with $50,000 distributed upfront and $50,000 released three months after launch. This subsidy will kickstart the network effects for this integration and enable significant gas savings while network throughput ramps up. More detail about the grant request is available here.
Proposal 103 - Risk Parameter Updates for MKR and AAVE
Status: Executed May 2nd, 2022
Proposer: Gauntlet
Voting Results: 552,804 For and 0 Against
Summary: Updated Risk Parameters aligning with Moderate Risk Level - increasing collateral factor for cMKR and cAAVE from 65% to 70. Gauntlet’s parameter recommendations are driven by an optimization function that balances 3 core metrics: insolvencies, liquidations, and borrow usage. For more details, please see Gauntlet's Parameter Recommendation Methodology and Gauntlet's Model Methodology.
Proposal 102 - OpenZeppelin Security Partnership - 2022 Q2 Adjustment V4
Status: Executed April 29th, 2022
Proposer: OpenZeppelin
Voting Results: 558,761 For and 0 Against
Summary: As outlined in the original proposal, at the start of every quarter OpenZeppelin will create a proposal to update the service fee payment in accordance with the formula outlined in the proposal. More details in this forum post.
Ongoing Discussions and RFPs
See the Compound Community Forum to see and join in the latest discussion.
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.
Markets Update
Current supply on Compound is at $5.4B from 301k unique addresses. 29% of this supply volume is ETH, 20% is USDC, and 19% is DAI. (source).
Open borrowing is at $1.4B from 9.1k unique addresses. 34% of this borrowing volume is USDC, 31% is DAI, and 27% is USDT. (source).
For live figures please refer to our Markets page.
Image Source: IntoTheBlock