Hey all, Ben from ScopeLift here. As long time Compound community members, and as a team focused on building tools for DAOs, we’ve been monitoring the situation with Compound’s governance closely. I’m glad to see this resolution, and I think in the long run, it will make Compound stronger. I think a staking solution for COMP will be good for the DAO.
Thanks @dennison for bringing up UniStaker. Clearly I’m biased, but I think UniStaker would be a great option for Compound. It’s designed to do exactly what the DAO is trying to achieve.
In short, UniStaker is a carefully constructed and heavily audited staking primitive, built on top of an improved version of the battle tested Synthetix staking rewards system, modified to work with COMP-style governance tokens in order to encourage governance participation while earning reward distributions. It’s soon to be adopted by Uniswap to distribute protocol fees to delegating stakers. I can say with some confidence it is on track to be adopted by some other large DAOs in the near future.
The UniStaker contracts could likely be adopted by Compound virtually as-is. To whatever extent some modification might be desired or needed—such as connecting the reserve distribution to the staker contracts—ScopeLift would be eager to assist in doing this. In addition, we’re building an LST on top of UniStaker that will be released soon. This would give COMP holders another option for staking and earning while maintaining delegation rights for their COMP.
As many of you know, ScopeLift is already working with the DAO to upgrade its Governor. We are happy to adjust the requirements of this process as needed, and have already been in touch with @cylon about this.
ScopeLift is a 2x grant recipient from the DAO. We still hold 100% of the COMP distributed to us for those grants. That’s because we believe in the DAO’s product and mission, and want to see it succeed. As I said, I think the Compound will emerge stronger than ever. ScopeLift is eager to step up and help make that happen however we can.
As a beginner thats not in the loop could I ask for general numbers on what this means?
How many net new market reserves are generated a year?
Also I’d ask if there will be a liquidity token representing staked CMP similar to wsteth or steth? Or will our comp deposited balance just grow like a USDC deposit?
Not asking for exactly numbers, just wondering are we talking ~500k distributed a year, 5 mil, 50 mil, etc?
Also will staked comp be able to vote still?
Is there a financial statement showing COMP’s costs/earnings I can read somewhere?
Can I ask why v2 seems to be providing most of the income? Is that because a lot of what’s being distributed is accumulated earnings from back when Comp v2 was the main use? Can I expect that v3 is more in line with what normal income will be once accumulated savings have been distributed?
Thanks, so basically we’d see greatly decreasing income as the total saved decreases 30% a year until we reach equilibrium in like 5+ years I guess unless Compound’s TVL grows and then probably whatever price we’re at reflects a 3% APR?
Assuming 12% staked (similar to sushiswap) the APR is crazy high.
Any idea what % we can expect to see staked? I’m not sure if there are economics that make COMP less likely to be staked than SUSHI.