Governance Updates, Binance Offers cDAI Interest Rates
Compound Digest - August 27, 2020
There are currently many active and important discussions in the Compound governance forum. See below for highlights, and please add your perspective:
“New Vanilla cTokens” - @jared lays out the steps to adding new cTokens to the protocol, so long as they have no special or unique functionality.
“Faster way to real community governance” - @compoundbart initiates a discussion on giving small COMP-holders and delegates a louder voice in governance.
“Governance Proposal X: Borrow Limits Comptroller Patch” - @arr00 plans to propose an upgraded Comptroller that includes the ability to implement borrow limits for certain markets.
“Vesting for the Compound protocol” - @tarun discusses Gauntlet Network’s work in designing a potential vesting mechanism for COMP distributed to protocol users.
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.
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
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.
Binance Offers cDAI Interest Rates
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.
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.