Launching the Open Price Feed, Protocol User Metrics Update, and More
Compound Digest - August 14, 2020
Open Price Feed
Compound Labs has officially launched the Open Price Feed.
The Open Price Feed is an open-source project where a set of reporters signs price data which is posted on-chain for use by DeFi protocols. There is no privilege required to post prices, and we encourage the community to build additional posters to keep prices up-to-date. The system is designed to support price data for any token, but initially supports prices for BAT, WBTC, COMP, DAI, ETH, KNC, LINK, REP, SAI, USDC, USDT, and ZRX. The system is also compatible with having many different reporters - notably, Coinbase is the first major reporter.
Proposal 19: Open Price Feed, currently in the active voting phase in Compound’s governance system, would switch the Compound Protocol’s current price feed to the new Open Price Feed. Upon implementing the Open Price Feed, the Compound protocol would initially be using the price data provided by Coinbase as well as a time-weighted average price from Uniswap's on-chain markets to ensure price integrity. This upgrade represents the last critical step in fully removing Compound Labs as an administrator over any part of the protocol.
For more information on the Open Price Feed please see the following links:
Protocol Metrics Update
A version of the below was featured in last week’s edition of Our Network. Data is updated as of August 14th.
The table above shows the average economic activity for each user of the Compound protocol. By taking the weighted average supply APY (2.45%) and multiplying it by the average supply amount ($48,335), we get an average interest earned amount of $1,182 per user. This same basic formula can be applied to the borrowing side of the protocol, where the weighted average borrow APY is 4.94% and the average borrow amount is $25,050, which gives us an average interest expense of $1,237 per user. The COMP portion of the economic calculation is based on a market price of $199 on Coinbase at the time of publication. This data can be a good reference point for applications, wallets, exchanges, or custodians who provide Compound as a service for their users and decide to take a cut of the economics as a potential business model. (Source)
The current supply on Compound is at $1.6B from ~34k unique addresses, with supply passing $2B for the first time earlier this week. In the past seven days, approximately $1.1B (gross) was added to the protocol, in 5.9k transactions. 77% of this volume was DAI, 14% was USDC, 8% was ETH and 1% was USDT (source).
Open borrowing is at $870M from 4.9k unique addresses. In the past seven days, approximately $1.2B (gross) was borrowed from Compound in 6.5k transactions. 70% of this volume was DAI, 22% was ETH, 7% was USDC, and 1% was USDT (source). There is currently $11.7mm of total accrued interest that has been generated by borrowers, up from $3.2mm on May 1st of this year.
For live figures please refer to our Markets page.
Links & Discussions
In an essay for Bankless, Compound Labs’ Calvin Liu explains the hurdles for institutions looking to integrate Compound’s interest rate markets.
The Block reports on the development of Compound Lab’s Open Price Feed.
Coin Telegraph reports on the pending deployment of the Open Price Feed.
Coindesk reports on how DeFi has shaped the purpose and public image of Ethereum.