Add MKR as a market: thoughts and discussion

Compound is the largest lender protocol of DAI other than MakerDao itself. As such, surely a large number of users of Compound for the dai liquidity markets are also interacting with the Maker ecosystem. I think the addition of this market to compound will initiate a large influx of funds and activity. The MKR token is very long standing and as such could be deemed good collateral. Hopefully others of ya’ll have had similar thoughts.

Just to disclose, I have some cDAI and personally own 0.9 MKR. Other than that I’m just a community member with an idea.

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I’m working on it. I’m aiming to have a proposal for the community to review this week.

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Getty, has anyone proposed or created a standard framework for adding new assets to Compound?

If not, want to collaborate with me on pulling a framework together?

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Great! What interest rate model are you starting with? I’m wondering if for non-stablecoins if we’d be better having a lower interest rates than the current models are. It definitely is leaning the protocol towards having “reserve assets” (BTC, ETH, etc) then stablecoins as the only large borrowed asset. Would we be interested in encouraging a higher utilization across the protocol, which could provide better protocol wide diversification and reduced price risk? Currently the protocol has a total borrow to total collateral (w/ collateral factors applied) of ~60%, which seems very conservative.

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