Grants Batch 5, Compound Treasury Expands Coverage, New Asset Collateral Factors

Compound Digest - August 20, 2021

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

Grants Batch 5 is Funded

The Compound Grants Program recently announced its fifth batch of funded grants. The Committee funded 7 additional projects for a total of ~$77k, bringing the total number of grants to 29 projects and total funding to ~$577k. A list of the newly funded projects is provided below.

Gas Optimizations

  • Applicant: Tyler Loewen

  • Grant Size: $10k

  • Description: Gas optimizations to the cToken and Comptroller contracts. Gas optimizations are incredibly important because they make Compound cheaper to use for all users.

Powerful Compound Dashboard

  • Applicant: Paperclip Labs

  • Grant Size: $20k

  • Description: As part of the second batch of grants, the Paperclip Labs team started work on an independent and open-source dashboard that shows a variety of data on Compound. The team is back to make this dashboard even more powerful. Based on input from the community, the team will add even more data sources to the dashboard.

Hardhat Plugin

  • Applicant: Archil Panchulidze

  • Grant Size: $6k

  • Description: Hardhat allows developers to easily debug code. Using this plugin, developers will be able to run/deploy Compound Protocol locally and use all hardhat features.

Compound Discord Bot

  • Applicant: Ah Kek

  • Grant Size: $1k

  • Description: The grant will go towards setting up a Discord bot that shows info like COMP price, stats, supply, and borrow. In addition, this bot will have commands to check one’s current liquidation risk and collateral ratio.

DAO Jobs Board

  • Applicant: Adrian Trustman, Aleks Larsen, Andreas Larsen, Derek Hsue, Gary Thung, Jon Yan, Kinjal Shah, Larry Sukernik, Margaux Paradis

  • Grant Size: $25k

  • Description: DAOs need contributors to work on them. Unfortunately, most contributors find working for DAOs daunting. This project will make an attempt to bring top talent to DAOs by creating an onboarding experience people are familiar with.

Interest Rate Curve Research

  • Applicant: Yash Patel

  • Grant Size: $5k

  • Description: Applicant seeks to complete an RFP to analyze data on Compound's interest rate curves. This report will include an analysis of the current parameters, recommendations for the interest rate curve.

Decentralized Governance Hackathon

  • Applicant: Boardroom x Gitcoin

  • Grant Size: $10k

  • Description: Co-sponsoring Gitcoin's Decentralized Governance Hackathon alongside Boardroom, UMA, Snapshot, Gnosis, and DAOhaus.

Compound Treasury Expands Coverage

Compound Treasury, a managed service for earning 4.00% APR on US Dollar balances powered by the Compound protocol, has expanded access to customers in California, New York, Florida, and Utah. With USD access, daily liquidity, and no fees, Compound Treasury provides the simplest experience for non-crypto native financial institutions to access the benefits of the Compound protocol.

If you’re an accredited institution in the states mentioned above, learn more on the Treasury website and get in touch with our team here!

Governance Updates

Since the last newsletter, Proposal 55 was canceled, Proposal 56 was executed, and Proposal 57 is in the review stage. 

Completed Votes

Proposal 55: Add Collateral Factors for MKR, SUSHI, AAVE, & YFI

Proposal 56: Add Collateral Factors for MKR, SUSHI, AAVE, YFI, & LINK

  • Status: Executed August 16th, 2021

  • Proposer: Getty Hill

  • Voting Results: 1,527,754 For and 30 Against

  • Summary: Proposal 56 updated the collateral factors of the newly added assets to the following values: MKR: 35%, SUSHI: 40%, AAVE: 50%, YFI: 35%, LINK: 50%. Asset collateral factors are crucial parameters for the safety of the entire protocol, and the community evaluated various metrics like market liquidity, concentration of holdings, and the number of supported exchange listings to arrive at these values. You can read this forum thread for the rationale behind LINK’s collateral factor, and this forum thread for the rationale behind the other assets. The community plans to add a compSpeed for these markets after a bug in the current implementation is resolved.

Proposal 57: Set Pause Guardian to Community Multi-Sig

  • Status: Review - 1 day, 3 hrs until voting

  • Proposer: Robert Leshner

  • Voting Results: NA

  • Summary: Proposal 57 transfers the Pause Guardian from Compound Labs to the Community Multisig that currently consists of @TennisBowling, @arr00, @blck, Compound Labs, Dharma Labs (@0age), and @jared. The Pause Guardian is a role designated by the Comptroller that allows an address to disable the Mint, Borrow, Transfer, and Liquidate functions of the Compound protocol, in the event of a vulnerability or exploit. Notably, the Pause guardian does not prevent users from calling the Redeem or repayBorrow functions, so that users can still exit the protocol at will. This action further decentralizes the protocol and ensures its long-term resiliency. 

Ongoing Discussions

See below for highlights from the Compound Community Forum, and join in the discussion:

  • Compound Finance COMP Rewards - @getty and @sukernik continue the discussion surrounding changes to the COMP reward mechanism.  In the coming weeks/months, there should be fleshed out plans regarding separate supply and borrow COMP rates, revamping the grants program, and subsidizing gas fees with COMP.

  • Add Market: SNX - @LawSirrah provides an update on efforts to add SNX as a supported market on Compound.

  • Compound governance is disorganized - @JacobPPhillips discusses the state of Compound governance and, alongside other active contributors, recommends some high-level solutions and ideas to consider.

  • Formal process for adding new collateral assets - @pyggie provides a framework for the community to evaluate adding new collateral assets.

  • Whitelist of addresses that can create proposals - @arr00’s work on creating a proposal generating whitelist of trusted community members continues with code upgrades and suggestions from the community.

Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.

Active RFPs

As a reminder, one of the best ways to participate in, and contribute to, the Compound ecosystem is to complete outstanding Request For Proposals (RFPs). The Compound Grants Program is offering substantial grants to individuals and organizations who work on the topics listed below. Have an idea in mind that's not included on the list? Feel free to apply with your own ideas here!

  • RFP 1: Decentralized batching contract | $25k

  • RFP 2: Voting with COMP collateral | $50k

  • RFP 3: Bringing Compound to L2's and other chains | $50k

  • RFP 4: Adding support for new assets on Compound | $12.5k 

  • RFP 5: Gas optimizations | TBD

  • RFP 6: Improvements to the liquidations process | $50k

  • RFP 7: Uniswap V3 management platforms as collateral | $25k

  • RFP 8: Balancer V2 liquidity as collateral | $25k

  • RFP 9: Open source Compound Interface | $50k

  • RFP 10: Ripcord wallet | TBD

  • RFP 11: Governance/Voters rewards | TBD

  • RFP 12: cToken Cleanup | $250k

  • RFP 13: cToken Interest Rate Model Changes | $100k

  • RFP 14: Gas Savings for cToken and Comptroller contracts | $100k

  • RFP 15: Dynamic COMP reward distribution | $100k

  • RFP 16: Migrate legacy cTokens | $50k

  • RFP 17: Deploy upgradeable cETH contract and migrate users to it | $50k

  • RFP 18: Uniswap V3 liquidity as collateral | $100k

  • RFP 19: Interest rate curve research | $5k

  • RFP 20: Optimism Starport for Compound Gateway | $100k

Developer Community Call Recap

The Compound community held a Developer Community Call last week to discuss ongoing protocol and application development. You can also access an audio recording of the call here

Markets Update

Current supply on Compound is at $17.9B from 295k unique addresses. 28% of this supply volume is ETH, 27% is USDC, and 25% is DAI. (source). 

Open borrowing is at $7.9B from 8.8k unique addresses. 43% of this borrowing volume is USDC, 41% is DAI, and 6% is USDT. (source). 

For live figures please refer to our Markets page

Image Source: IntoTheBlock

Links & Discussions

  • Compound Labs CEO, Robert Leshner, joins the 11:FS Podcast to discuss the fundamentals and current trends in DeFi.

  • Compound Labs Business Development Associate, Nick Martitsch, joins a DeFi Conference 2021 panel to discuss institutional investment in DeFi.

  • RioDeFi integrated Compound’s interest rate markets into its wallet application.

  • Compound Labs General Counsel, Jake Chervinsky, joins the Bankless podcast to discuss the current state of DeFi regulation.

  • Compound community member Luca Prosperi provides a deep analysis on the financial primitives of the Compound protocol.

  • OpenFrontEnds offers a bounty for community members to build an open-source version of the Compound app interface.

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