As we finish the first month of a new year of the Growth program, we’ve like to present a set of priorities on key opportunities for Compound Protocol Growth, these include adding new assets and markets. We have received a lot of positive feedback so far. In this update, we will dive into our key campaigns across a variety strategies.
TL;DR; Here’s a snapshot of our strategy to help Compound Grow:
- USDT Markets on V3 (ETH, ARB, POLYGON, OP)
- OP Chain Deployment
- Rewards Contract Token Expansion
- Diversify Markets & Asset Listings
- Community Process Documents
- Native USDC alignment
- RWA Initiatives
- Marketing Strategies
- Transparency through Dune Dashboards
Priority Campaigns
1. USDT Markets on V3
Over the next two weeks a proposal for a new USDT market will come to the forum to mirror the USDC market. We will start with ETH mainnet first, then if we see positive progress, we will expand to Arbitrum (1.5B USDT), Polygon(600M), and OP(300M), prioritizing chains with the greatest USDT market cap and volume. This strategic deployment aligns with market dynamics as USDT has a larger market cap than USDC on the chains listed.
2. OP and Other Chain Deployments
We are tackling the challenge of launching on Optimism without upfront grants, we’re focusing on retroactive public goods grants. The goal is to bootstrap liquidity with strategic partners. We’ll start with USDT and explore other high-market-cap collaterals. https://optimistic.etherscan.io/tokens
3. Rewards Contract Token Expansion
We’re broadening beyond the COMP token to include additional rewards in tokens like ARB, OP, and potentially MATIC. Multiple token rewards will allow strategic partners to launch incentive programs to drive adoption of their assets. We are starting with Base chain and native USDC to set the stage for future chain successes.
4. New Asset & Market Listings
From GMX assets on Arbitrum to Wrapped Staked ETH markets, we’re looking to diversify Compound’s product offerings. The GMX protocol now has GM ERC20 tokens that offer up to 40% embedded yield. We approached GMX and they were excited to begin the listing process for multiple assets of their yield generating pools. We’re also in a conversation with Frax to start to support some Frax assets. Probably the biggest opportunity in terms of market cap is wstETH. We are in touch with Lido to establish a market. Asset and Market listing evaluation posts will appear on the forum over the next couple weeks.
5. Community Process Documents
One of the main issues for a new Asset, Market or Chain is how to engage with the Compound DAO and what qualifications are needed. We are compiling clear, concise instructions and guidelines for anyone from the community to begin to process a new Asset, Market or Chain. The docs will include guidance and guidelines for a golden path from start to finish. Also creating templates for all forum posts and requests for approval, to streamline the process and increase the velocity of advancement for assets, new markets and chains.
6. Transition Existing USDC.e to Native USDC
Moving from USDC.E to native USDC on various chains to enhance security and reduce bridge risk, positioning Compound as a frontrunner in the evolving DeFi market.
7. RWA Initiatives
We have begun conversation and are engaging with Tether GOLD, USDM, and early conversations with other collateral backed assets. USDCM is a great example of a potential embedded T-bill yield embedded inside a stable coin. The issue here is that the LP provision of the USDM does not have much on-chain liquidity. We will make recommendations to start in isolated markets and have already communicated on chain liquidity issues for a couple of these assets.
8. Vaults, Yield and Structured Products
Once new assets and markets become available we have begun conversations with 3 different yield projects to help co-launch with particular markets. More information will be revealed closer to implementation and we are open to more introductions to projects who would be interested in partnering with new and existing markets.
Marketing
1. Compound Interest Signals
Compound’s USDC supply rate was above 10% however this was not communicated as there isn’t a channel to communicate this type of opportunity. We will begin tracking and analyzing stablecoin interest rates to guide users towards Compound’s advantageous rates. This critical analysis could be a grant project or an internal AlphaGrowth initiative. TBD on the exact execution and always open to community feedback.
2. New Twitter Presence
Creating a dedicated Twitter account for Compound growth, enhancing our digital footprint and community engagement.
3. Quest App for Campaign Tracking
Given the challenges of tracking attribution in Web 3.0 without traditional analytics tools like Google Analytics or Mixpanel, another avenue is needed. Our current best marketing strategy is to engage a quests platform such as Layer 3, Galaxe, or Zealy. Another idea is creating a decentralized front end with tracking features to promote various campaigns and educational initiatives. TBD on the exact execution and always open to community feedback.
Transparency
Dune Dashboards
AlphaGrowth will Implement Dune Dashboards within the next two weeks to provide clear, transparent data on user engagement, TVL, transactions and fees generated. This will help demonstrate the impact of AlphaGrowth’s work.
Conclusion
With so many opportunities available for Compound we are learning and adjusting to new feedback in real-time and as always welcome feedback from the community. Sometime this week we will open a live twitter space for AMA feedback on the topics above.