Governance Updates, Binance Offers cDAI Interest Rates

Compound Digest - August 27, 2020

Highlighting the best of the Compound ecosystem. For more updates, join our community on Discord, Twitter, and Comp.xyz.

Governance Updates

There are currently many active and important discussions in the Compound governance forum. See below for highlights, and please add your perspective:

In addition, there is a proposal from @tarun and Gauntlet Networks that is in the active voting process right now.

Proposal 21: Reduce COMP emissions by 20%

Based on the “Systematically Reduce Emission Quantity” forum discussion led by @tarun, Gauntlet Networks has created Proposal 21 to lower the compSpeed (the emission rate of COMP) to 0.176 COMP per Ethereum block. Their stated intention is to follow up this proposal, if successful, with a proposal to add a vesting mechanism to COMP emissions as well.

The vote ends on August 29 at approximately 1:09pm UTC.

Completed Votes

As for votes completed since the last newsletter, Proposals 19 and 20 passed with effectively unanimous support:

Proposal 19: Open Price Feed

  • Status: Executed August 17th, 2020

  • Proposer: Geoffrey Hayes

  • Voting Results: 701,578 For and 0 Against

  • Summary: The Compound protocol now relies on the Open Price Feed to source price data for its markets, with Coinbase and Uniswap as the first reporters. Read the community discussion on the proposal here

Proposal 20: Upgrade cUSDT Interest Rate Model

  • Status: Executed August 21st, 2020

  • Proposer: blck

  • Voting Results: 898,364 For and 1 Against

  • Summary: With help from fellow community member Ar00, blck proposed and passed a new interest rate model for cUSDT, based on the JumpRateModelV2 upgrade that the Dharma team passed for cDAI. Read the community discussion on the proposal here

Join the Compound governance discussions at Comp.xyz, and be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.

Binance Offers cDAI Interest Rates

Binance has launched DeFi Staking, allowing its users to earn interest on DAI by supplying it to Compound, directly through the Binance interface

Currently, Binance offers three staking options, with customized terms around minimums/maximums, unlock period, and time commitment:

This type of integration highlights the flexibility of the base functionality of the Compound protocol, which enforces none of Binance’s customized terms (it has no minimums/maximums, no unlock period, and no required time commitment), but still fully empowers Binance to design and launch customized interest rate products that make the most sense for its own users and its own business. 

Highly programmable, openly accessible, transparent, and reliable - this is the power of DeFi!

Third-party integrations like Binance’s are crucial for broadening access to yield opportunities and simplifying the onboarding experience for users. If you are a developer interested in adding Compound interest rates to your application, exchange, custody offering, or any other product, please feel free to reach out to our team for technical guidance and support.  

Markets Update

The current supply on Compound is at $1.7B from ~35k unique addresses. In the past seven days, approximately $487M (gross) was added to the protocol, in 6.3k transactions. 47% of this volume was USDC, 25% was DAI, 20% was ETH and 3% was USDT (source). 

Open borrowing is at $963M from 5.2k unique addresses. In the past seven days, approximately $157M (gross) was borrowed from Compound in 1.7k transactions. 62% of this volume was DAI, 12% was USDC, 12% was USDT, and 8% was BAT (source). There is currently $13.8mm of total accrued interest that has been generated by borrowers, up from $10.1mm  on July 1st of this year. 

For live figures please refer to our Markets page.

Links & Discussions

  • Compound, alongside Huobi, Nest, dydx, and Maker, has helped launch the Global DeFi Alliance to promote research and collaboration among projects in the space.

  • Greenfield One, a crypto-focused VC firm, has released a research report highlighting the importance of governance systems in DeFi protocols like Compound. 

  • Uniswap announced Token Lists, a new standard for creating lists of ERC20 tokens that they hope helps users distinguish legitimate tokens from scams, fakes, and duplicates. Here is the Compound Token List.

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