ETHDenver Underway, Developer Community Call Recap, WBTC CF to 75%
Compound Digest - February 11, 2021
ETHDenver is Underway
Compound Labs is proud to again be sponsoring ETHDenver. There are more than 90 teams building new Ethereum projects over the extended hackathon period. Instead of 48 hours, hackers have a full week to bring their projects to the first milestone. The hackathon submission deadline is 9am MST on Friday, February 12th, 2021.
The Compound bounty in this year’s hackathon is to build the most original, new financial application. The Compound Composability bounty’s only requirement is that the project must be built on top of the Compound Protocol. The winner, who will be selected on Friday, February 12th, will receive a prize of $5000 of cUSDC. Best of luck to all of the hackathon participants!
Developer Community Call Recap
The Compound community held a Developer Community Call yesterday to discuss ongoing protocol and application development. Below is a brief overview of the topics covered.
The Gauntlet Team gave a quick update of their progress. They are currently awaiting results of a professional audit. John from Gauntlet thanked the community for its continued analysis and detailed feedback on the proposed changes.
Julia Wu shared DeFi Terminal, a new app that she has been working on. The project is a web app that is built on Compound.js and the Compound API. It fetches data from the API and creates data visualizations like charts and graphs. The community had very positive feedback on the project as well as suggestions of what could be added to improve the app. In addition to Compound, the app also supports Yearn data visualizations.
Getty Hill and Sorawit Suriyakarn, CTO of Band Protocol gave a presentation on the progress of the Open Price Feed changes. The code progress is available in the Open Oracle Medianizer repository on GitHub. There was discussion on how to approach gas price issues and posting prices on-chain. Getty mentioned that posting is somewhat subsidized by liquidators because it is in their best interest to post prices on chain in order to perform liquidations. In the early form of the Medianizer there will not be any new considerations to gas costs. Sorawit mentioned that the code in the repository is a rough draft and that further optimizations will be made once the community provides some feedback on the proposed implementation. Notably, Jared from Compound Labs sought to encourage discussion towards using completely decentralized prices (e.g. Uniswap). The discussion continues on the comp.xyz forums.
As a reminder, the community holds bi-weekly calls every other Wednesday at 9:30am PT / 4:30pm GMT. The next call will be on February 24th in the Compound Discord. Add the Compound Developers Google Calendar here. We hope to see you on the next call!
Since the last newsletter, Proposal 36 passed through governance with 98% support from the community.
Status: Executed February 6th, 2021
Proposer: Getty Hill (CAP)
Voting Results: 641,899 For and 12,101 Against
Summary: Proposal 36 increased the Collateral Factor of WBTC from 60% to 75%. This proposal was initially created as a Compound Autonomous Proposal and follows a previous vote to increase the WBTC CF from 40% to 60% on October 1st. In the accompanying forum post, Getty explains that the growing liquidity for WBTC on DEXes and higher collateral factor for WBTC on other DeFi protocols warrant this parameter update. @MonetSupply of Tally and @FranklinBi of Pantera Capital both provided rationale for supporting the proposal, mainly centered on the improved liquidity and risk profile of the asset. @Gauntletnetworks provided reasoning for voting against the proposal, based on stress tests that they have simulated. According to Gauntlet, large WBTC positions held by a small concentration of users increases the risk of insolvency substantially. The Gauntlet team is preparing a future governance proposal to modify all of the existing collateral factors.
Status: Succeeded February 11th, 2021
Proposer: blck and Arr00
Voting Results: 1,046,375 For and 5,001 Against
Summary: Proposal 37 upgraded the cUNI implementation to include a new method for returning assets. It sends ERC-20s to the origin wallet when they are accidentally sent to cUNI. Arr00 created a set of rules for the new method’s use going forward. The sender of assets must verify their identity with an on-chain signature, a 10% penalty will be imposed, and the assets must have a minimum value of $1000 USD at the time of posting.
Arr00 collected 30 COMP for organizing the process and completing the necessary code changes.
See below for highlights from the Compound Community Forum, and join in the discussion:
Proposal: Increase USDT maximum interest rate - @dvf provides a detailed analysis on why the 100% utilization borrow rate for USDT should be raised from 29.42% APY to 39.9% APY.
Improving Liquidation - @rleshner prompts a conversation on potential changes to the liquidation system, to increase protocol reserves.
Grants Committee Draft and Rationale - @massnomis lists the pros and cons of various grant committees in DeFi, and provides a framework for a potential Compound grants committee.
Formal Analysis Period for Larger Proposals - @Shubiwubi brings attention back to increasing the window of time for the community to review governance proposals.
Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.
Current supply on Compound is at $8.2B from 279k unique addresses, up from $6.38B a week ago. 29% of this supply volume is ETH, 22% is DAI, and 20% is WBTC. (source).
Open borrowing is at $3.6B from 7k unique addresses. 44% of this borrowing volume is DAI, 34% is USDC, and 7% is USDT. (source).
For live figures please refer to our Markets page.
Image Source: IntoTheBlock
Links & Discussions
MatrixPort added support for Compound on its DeFi fixed-term yield product.
The Tally newsletter covers the Compound governance proposal to raise the WBTC collateral factor.
Instadapp released a new Actions feature that allows borrowers to refinance their borrowing positions on Compound.
PoolTogether launched a COMP token prize pool that distributes rewards every week.
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