Following Proposal 021, the protocol is accumulating ~578 COMP each day, which is creating a sizable treasury that can be used to expand & improve the Compound protocol.
New incentives, developer grants (and bounties for completed work), reducing risk (converting the treasury into each supported asset), education, marketing, hiring staff / members of the community - and all creative ideas are feasible. It’s now up to the community to deploy these ample resources. And with the introduction of Autonomous Proposals, participating is easier than ever.
If you have free time, Solidity knowledge, or any other skills that you can use to improve Compound–take this as a call to action to get involved. Here are a few of the ideas and challenges that I think are worth tackling, and worth rewarding:
The protocol can support any market with a reliable price feed; currently, the Open Price Feed supports a subset of Coinbase Pro assets, including ones that haven’t been added to Compound yet (KNC, LINK, COMP).
Every market added to Compound increases its utility - and the community should never stop evaluating opportunities to safely expand markets.
L1 Gas Optimizations
Over the past few months, Ethereum has become slow and expensive to use–and many aspects of the protocol were designed in a low-cost era. While there’s no silver bullet, shaving off gas costs will have a direct benefit for every user and application. Potential improvements include:
- Optimizing the cToken contract (and deploying a new implementation for upgradable cTokens, including DAI and USDT).
- Removing the automatic distribution of COMP (which adds gas to every user action), and fall back to deliberately claiming COMP.
- Reverting cDAI to no longer sweep DAI into the Dai Savings Rate (which has been 0% for quite some time).
- In-lining the interest rate models into the upgradable cTokens.
The economic competitiveness of the protocol is the foundation for everything else the community builds upon.
- Standardize collateral factors for stablecoins and collateral assets.
- With WBTC liquidity rapidly scaling, and following a 0-incident pilot, raise the collateral factor to mirror other high-quality assets like ETH.
- Implement borrowing caps for collateral assets, limiting risk for suppliers of those assets.
The distribution of COMP is central to bring new users, voices, and participation into the protocol and it’s governance.
- Add a function to the Comptroller to manually distribute COMP to approved recipients; this could be used for grants, or new distribution mechanisms.
- Add vesting for the COMP Distribution, discouraging speculators and increasing the amount of COMP available to organic users of the protocol.
- Improve the COMP Distribution mechanic, to allow Governance to granularly set the COMP Distribution speeds by market–allowing a more customized set of incentives.
- Distribute COMP retroactively to early users of the protocol.
- Increase the distribution of COMP to developers that build value-add products on top of the protocol.
- The community, for the most part, has relied on ad-hoc governance. A member of the community could become a part-time (or full-time) coordinator, to organize governance calls, development efforts, and community engagement.
- New tooling (like comp.vote in the works) can expand participation in new ways.
There’s a lot of opportunities to participate - and the community will help you succeed.