ETHOnline Bounty Winners
Thank you to all the teams who participated in this year’s ETHOnline Hackathon. Below is an overview of the teams who won prizes in each of the categories sponsored by Compound Labs.
Compound Protocol Improvement Proposal (1) ($1250 cUSDC): Split
Split allows users to deposit Compound’s cTokens into a vault and receive component tokens that represent the deconstructed capital and yield portions of the cToken. This system enables investors to choose between exposure to yield (with minimal capital risk) or price speculation (on the pure capital token). In the future, Split plans to also decompose the governance aspect of tokens, where applicable.
Compound Protocol Improvement Proposal (2) ($1250 cUSDC): Flashbank
Flashbank allows suppliers on Compound to earn additional yield by making their borrowing power available for flashloans. The Flashbank team plans to add this functionality to the cDAI contract before expanding to other markets like cUSDT.
Best Use of Compound.js ($1500 cUSDC): DBeats
DBeats is a decentralized music platform where users can subscribe to an artist by staking ETH. The ETH is supplied to Compound where it earns interest that is directed towards the artist. At any time, the user can unsubscribe and get their principal ETH back.
Best New Governance Tooling ($1500 cUSDC): Tokenlog
TokenLog is a governance feature that allows token holders to vote on what issues matter most to them, rather than only voting on single proposals. Projects who use TokenLog can gather richer community feedback on how to prioritize the development pipeline.
If you’re interested in developing new applications and experiences on top of the protocol, please start with the protocol documentation and guides, check out this pre-recorded workshop, and reach out in the #development channel of the Compound Discord. The Compound community and the Compound Labs team are always happy to provide guidance and feedback. Also, join the bi-weekly developer call (see below)!
Developer Community Call Recap
The Compound community held its first Developer Community Call last week to discuss ongoing protocol and application development. Below is a brief overview of the topics covered, and you can also view a longer recap on the community forum or listen to a recording of the call.
0xRedan introduced a payment channel project called cChannels that locks assets into Compound by default when they are bridged to an L2, so users can automatically earn interest while the L2 solution is open.
Gauntlet (Tarun and John) described their pull request that would add vesting and various optimizations to the Comptroller contract.
Split (Francesco and James) showed a demo of their ETHOnline Hackathon project called Split, which deconstructs cTokens into a capital component and a yield component
Comp.vote (TennisBowling and Arr00) are working on gasless voting and delegating using signatures, which you can use today on Comp.vote.
Flashbank (Thrilok and Vaibhav) presented their project to bring flash loans to Compound, starting with the cDAI contract.
0age discussed ideas for an improved “Governor Beta” governance system.
Getty Hill shared his ideas on updating the collateral factor mechanism for each asset and better ways to assess asset risk more generally.
As a reminder, the community holds bi-weekly calls every other Wednesday at 9:30am PT / 4:30pm GMT. The next call will be on November 11th in the Compound Discord. Save the Google Calendar invite here. We hope to see you on the call next week!
Since the last newsletter, Proposal 28 was proposed but subsequently canceled due to losing the 100k minimum COMP delegation required during the voting process. Prior to cancellation the proposal received unanimous support from the community and will likely be resubmitted in the near future.
Proposal 28: Delegate UNI
Status: Canceled November 3rd, 2020
Proposer: arr00 (via CAP)
Voting Results: 503,747 For and 0 Against
Summary: Proposal 28 delegates the voting power of UNI held in the cUNI contract to the community multi-sig, allowing the multi-sig to vote as a block on future Uniswap governance proposals. Shortly after a Uniswap proposal is created, cUNI holders will be able to participate in off-chain voting on this snapshot page, proportional to the amount of cUNI they hold at the time of voting. The multisig will then vote in Uniswap governance according to the will of cUNI holders. In order to protect against malicious voting behavior, the multisig will have a 1 week vesting period for voting power of newly acquired cUNI, will not count borrowed cUNI in the off-chain voting process, and will not validate the vote unless there is a 10% quorum. This proposal also distributes 600 SAI from protocol reserves to Arr00 for his work on setting up the cUNI voting system.
Rafael Cosman created a new autonomous proposal to add TUSD as the next supported asset on Compound. The proposed cTUSD market features a 0% collateral factor, 5% reserve factor, JumpRateV2 interest rate model, and no borrow cap. You can read Rafael’s forum post for more context on TrueUSD and reactions from the community. Consider delegating your support to this CAP, or follow this guide to create your own if you have at least 100 COMP.
See below for highlights from the Compound governance forum, and join in the discussion:
[Discussion] Governor Beta – @monet-supply kicks off the discussion around 0age’s proposed upgrades to Compound Governance to protect against flashloan voting events.
HUSD Listing Proposal – @DeFiNavy proposes adding support for HUSD (a USD pegged stablecoin) on Compound.
ETH 2.0 Layer 2 e.g Matic Compound version – @Cryptoinvest discusses the possibility of reducing gas fees by duplicating Compound on an L2 solution like Matic.
PowerIndex Grant Program for the Compound Protocol – @PowerPool explains how Compound could participate in a Smart Defi Index called PowerIndex.
Augur Migration Proposal – @monet-supply suggests lowering the REP collateral factor to encourage migration to REP v2.
Add support for Rari Capital tokens – @JustinYu proposes adding support for the pool and governance tokens in the Rari Capital ecosystem.
Be sure to either vote on proposals with your COMP, or delegate your COMP voting rights to a representative of your choice.
Current supply on Compound is at $2.5B from ~118k unique addresses. In the past seven days, approximately $619M (gross) was added to the protocol, in 41k transactions. 46% of this volume was ETH, 21% was USDC, 17% was DAI, and 15% was WBTC (source).
Open borrowing is at $1.4B from 6.1k unique addresses. In the past seven days, approximately $198M (gross) was borrowed from Compound in 1.2K transactions. 57% of this volume was DAI, 35% was USDC, 6% was USDT, and 2% was ETH (source).
For live figures please refer to our Markets page.
Image source: IntoTheBlock.
Links & Discussions
Opyn announced that cTokens will be supported as collateral on Opyn V2, allowing sellers to earn interest and COMP on their collateral.
Compound Labs CEO, Robert Leshner, joined a fireside chat with Solana to discuss the origins of Compound and the growth of the DeFi ecosystem.
The Tally Newsletter reports on the Compound protocol’s first Developer Community Call.
Tweet of the Week
The 8 pages that kickstarted the DeFi revolution:
October 29th 2020
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