Governance adds Tether & cDAI Rates, Gnosis Q&A, and Donut Launches
Compound Digest - May 06, 2020
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Since the launch of community governance, two protocol changes have been proposed, voted on, and implemented into Compound.
The first, submitted by Geoff Hayes (Compound’s CTO), was a proposal to Add USDT Support to Compound. The second, submitted by Dharma (a popular application that integrates Compound), was a proposal to Update the Dai Interest Rate Model to Better Accommodate a Zero Stability Fee for DAI, as set in the Maker protocol.
Visit the Governance Dashboard to see full details on each proposal, as well as which governance delegates voted for or against each proposal.
Proposal 001: Add USDT Support, by Compound
Tether (USDT) support has been requested by the Compound community for months, and became the first-ever Compound governance proposal.
This proposal added USDT as a borrowable asset with its own interest rate — but did not allow USDT to be used as collateral. The code to support the USDT market was reviewed by the Compound team as well as OpenZeppelin.
The proposal succeeded on April 29, was queued into the governance timelock for two days, and was executed on May 1. The Tether market is now live for you to use!
Proposal 002: Updating the DAI Interest Rate Model, by Dharma
Dharma is a user-friendly wallet for crypto dollars (stablecoins), built on the Compound Protocol. In the first-ever community-sponsored governance initiative, Dharma proposed to adjust the DAI interest rate model to provide a modest interest rate to capital suppliers when utilization of the DAI market is below 90%. This change is intended to improve the DAI supplier experience with minimal impact to the borrower experience.
Dharma’s proposal succeeded on April 30, and was executed on May 2.
The success of this proposal marks a momentous shift in the history of Compound. It is the first instance of a protocol change driven end-to-end by the Compound community, as opposed to the Compound team.
We’re incredibly proud to have Dharma as a key member of our community, and very excited to see what the community comes up with next.
Compound and the Dragon Quest Hackathon
We saw six submissions for the Compound bounties in the MetaCartel Dragon Quest Hackathon. Thank you to all that participated! We’ve been excited to see all of the fun and interesting innovations you are building on DeFi. The winners of the Compound bounties are Dedge and the Governance SDK. Below are links to all of the submissions and their source code.
Borrow Bounty Submissions
Dedge (WINNER) - Dedge gives users the ability to instantly swap collateral or debt between different crypto assets. Here is the StudyDeFi GitHub.
Minimal Finance - A minimal ETH supply and DAI borrow interface powered by Compound. Here is the GitHub repository and the hosted DApp.
Favela sem Corona - An app that helps people that live in poor areas of Rio de Janeiro, to receive crypto donations in cDAI and use them like fiat. Here is the GitHub repository.
Governance Bounty Submissions
Node.js Compound Governance and COMP SDK (WINNER) - Node.js library for interacting with the Compound Governance ecosystem, specifically with the Governor Alpha and COMP contracts.
Minimal Governance - A Compound governance dashboard that shows a leaderboard and proposals for both Mainnet and Ropsten. Here is the GitHub repository and the hosted DApp.
Destiner's Compound Governance Dashboard - An app to keep track of Compound’s governance process, currently for Ropsten. Fetches data from the blockchain (params and proposals) and Compound API (accounts). Here is the GitHub repository and the hosted DApp.
Gnosis Releases Safe Apps with Compound
Gnosis Multisig is a secure wallet for Ethereum assets. The team has just launched Safe Apps, which enables direct interaction with DeFi and other Ethereum applications from the Gnosis wallet interface. Users can choose to add protocols like Compound to their wallet, and then make multisig transactions across applications from a single user interface.
What went into building the initial product?
We launched our new Gnosis Multisig product a few months back as a successor to our original multisig. This enabled a much better user experience and also allowed us to build out app integration. The core aspects that make this possible are our SDK, UI kit and components to make it easy for teams to build their apps.
What don’t people know about Gnosis products?
Our multisig products are some of the most used contracts on Ethereum. Combined, there are over $600M in assets stored. These funds currently don’t have an easy way to enter the growing DeFi ecosystem. We think we can help bring the next $1bn to DeFi.
What does the tech stack look like?
Our tech stack is quite standard: Modular Solidity smart contracts, a React frontend and a Django backend for data aggregation and the transaction relay service.
How can devs use Gnosis Safe with Compound to build something awesome?
The current Compound integration into gnosis-safe.io is very basic and only allows users to use their Multisig funds in Compound without compromising multisig security. This is already great but we can do more with Gnosis Safe contracts. Gnosis Safe contracts can be extended with modules, which allow DeFi automation.
One idea for Compound could be a bank run protection: In case there is an issue on Compound all user funds could be withdrawn from Compound without user interaction - trustlessly. Another idea is rebalancing funds between different DeFi apps, lots of opportunities.
What are the next steps and goals for Gnosis Safe Apps?
The first few months after Safe Apps launch will be heavily focused on developers. We want to build a large list of applications for multisig users to pick from. We think this can then prove to be the most secure and easy way to interact with applications on Ethereum and our goal is to continue to grow our user base.
We are very excited that Compound is the first app to be developed and we’d love to hear users’ feedback on the integration!
Eric Conner, Gnosis
Donut converts spare change into Compound Crypto
Donut is a mobile app that converts users’ spare change into bitcoin, and also enables users to accrue interest on digital dollars (stablecoins). Users connect their cards/bank accounts using Plaid. When they make a normal, everyday purchase, the cost is rounded up to the nearest dollar, and this “round-up” is automatically converted to bitcoin. Users can also directly deposit dollars, which are converted to DAI and supplied to Compound to earn interest.
Donut recently launched on Product Hunt, where they were the second highest-upvoted project of the day. Check out more details and Q&A on their Product Hunt page!
More Links & Discussions
Developer Workshop Video for Compound Governance Interfaces
1inch Exchange implemented cUSDT
Dharma releases Social Payments
DeFire enables easier DeFi development with an SDK
MyCrypto’s dashboard (beta) enables Compound supplying via DeFi Zap
How to Use Compound Liquidity Pools to Earn Your First DeFi Yield
Anchorage Supports Compound at Launch
DeFi platform Compound launches decentralized governance token with support from Coinbase Custody (The Block)
DeFi platform Compound approves interest rate upgrade in historic vote (Decrypt)
Current supply is at ~$116 million from ~19,000 unique addresses. In the past seven days, approximately $32 million (gross) was added to Compound, in almost 4,000 transactions. About 43% of this volume was DAI, 29% was USDC, and 22% was ETH.
Open borrowing is at ~$19 million from ~1800 unique addresses. In the past seven days, approximately $5.5 million (gross) was borrowed from Compound. About 72% of this volume was DAI, 19% was USDC, 8% was WBTC, and 2% was ETH.
For live figures please refer to our Markets page.