Compound Developer Community Call – August 9th, 9:30am PT

On August 9th, at 9:30am PT, the Compound community will hold its next Developer Community Call. This will be an open discussion forum for individuals and organizations developing protocol improvement proposals or building applications and projects that integrate the protocol.

Below is the high-level agenda for the upcoming call. Note that this call belongs to the community, and as a community member you are empowered to take this call in any direction you think best benefits the community. If you wish, you may help organize it, structure its agenda, lead it, etc.

  1. Welcome: Adam will recap the ground rules for the call.
  2. Proposal/Project Discussions : The following community members have volunteered to discuss projects that they are working on.
  • Gauntlet - Paul
  • OpenZeppelin - Michael
  • Alastor & w3s - Bernard and Sam
  1. Open Discussion

If there are any other proposals, projects, or topics you’d like to add to the agenda, please post on this thread or in the Compound Discord. Everyone is welcome to participate and contribute.

Lastly, the call will be audio-recorded and the recording will be shared in this thread for anyone who can’t make it.

Here is a link to the Discord voice chat event: Compound Discord Voice Chat

Hope to see you on the call!

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Audio recording of today’s Compound Developer Community Call: CDCC-2023-08-09.mp3 - Google Drive

[00:00:00] Adam Bavosa: Hello everyone. Welcome to the compound developer community call. This is the place for the community to discuss compound protocol, governance, upgrades, and projects developers are working on that depend on the protocol. We meet every other Wednesday in this discord at 9 30 AM Pacific time. Please make sure your microphone is muted.

[00:00:18] Adam Bavosa: If you are not speaking an audio recording of the call will be available on the forums later today at www. comp. xyz. If you do not wish for your voice to be recorded, you can type messages in the development channel. Only those with the community tag have microphone permissions. Please keep the conversation civil and on topic.

[00:00:36] Adam Bavosa: Those that are disruptive will be banned from the Discord. Today we’re going to be hearing from Web3 Studios and Elastir. We’ll also be hearing from Gauntlet and open Zeppelin. So let’s get started with our first speakers. We have Alistair and web three studios.

[00:01:01] Alastor: Hi guys. Hi, Adam. Thanks for having us. I think Sam still needs the community tech and then needs to rejoin, but I’m happy to kick things off. Yeah. Thanks for giving us the opportunity to quickly, run through our proposal that we post a couple of day goes. Go on the forum which is labeled a strategy and growth proposal for Compound.

[00:01:22] Alastor: Just wanted to, use the opportunity to give a bit of background and happy to get more feedback on an individual level after the call. To kick things off, bit of background of the two groups that collaborated on the proposal myself part of the W three s. Team we support DAOs in strategic contributorship topics.

[00:01:51] Alastor: And these are mostly related to strategy and growth initiatives and governance related topics. Lately working on the Uniswap grant program for the arbitrum airdrop also together with the Alasdair team. And the Alasdair team has done a couple of things for Uniswap, Lido recently helped with the unstable DH merger and so on and so forth.

[00:02:15] Alastor: And more details on that on the forum by personal background come from the strategy side. So spend most of my time at McKinsey doing much of the stuff that we have in the proposal on the more, tech scale up and corporate side. But this is, I think enough, background on us for now.

[00:02:35] Alastor: Regarding the proposals of how did this come around? What how this basically originated was us looking at the market share decline of compound in DeFi lending, which was rapidly decreasing from, I think, 21, March 21 where it was at 60%. Now being at 8% today, while obviously competitors in the market have been makers significantly increasing their market share.

[00:03:04] Alastor: Which led us to spin up a proposal because we still think there’s a strong kind of brand reputation of compound and opportunity to, revitalize growth with also compound three now being live. That, was the kind of kickstart. So we sat down and looked at, okay, how could we support.

[00:03:29] Alastor: The protocol with strategy and growth initiatives to in the end, always have the overarching objective in mind to, drive TBL to the protocol. What we’ve now done is nailing out all initiatives that we deem. Useful across different work streams where we see, okay, this has a clear benefit to drive TVL.

[00:03:58] Alastor: This is right now at the state where we would love to get feedback from people involved to see, okay, which of these initiatives. Do you also see to be impactful and so on to, take one turn of iteration and then, carve it out to the fullest to give a high level view on.

[00:04:23] Alastor: On the initiative for work streams that we defined goes along three main work streams labelled protocol strategy operations, partnership strategy, and then transparency and accountability, which holistically make up a strategy and growth unit, so to speak. For the first work stream to, dive in a bit on a bit more deeper level we want to support the product, protocol, surgery and operations it’s called, we want to support decision making and this is basically us doing market and competitor analysis to find out initiatives that work well in the market that we could apply for compound to drive TBL.

[00:05:09] Alastor: Second work stream called partnership strategy, basically us identifying, the highest ROI partners and channels to acquire a user and drive protocol growth and assessing which of these are with which practical implications come to different channels.

[00:05:31] Alastor: In terms of, costs, resources, spend and impact that we could expect. And then thirdly it’s a more, underlying works being called transparency and accountability. This is us going in and setting up a KPI system where we can track all of this initiatives as in, okay, which of these are.

[00:05:51] Alastor: Which KPIs do they target and then enabling us to track them going forward when we execute them on how successful have they actually been, have they promised what we, or have they delivered what they promised and we promised and some and this is basically the third.

[00:06:11] Alastor: Wrapping up the whole searching growth initiative, what we now want to do and maybe last thing on resourcing how this would work out, we would dedicate resources from both of our teams. And these will change in the process. We have 10 people in our team. Alastair has a couple of guys and we will split work accordingly.

[00:06:39] Alastor: How we would price it is basically on average have two part time resources. Working on this one senior, one junior and then split, who does that behind the back was our approach to, keep it as lean as possible from a cost perspective, being mindful that’s our first, work that would be conducted for compound also a chance for us to, prove the quality of work and so on.

[00:07:08] Alastor: And this is, where we landed. So now I talked a lot obviously interesting to, not being able to get direct feedback on this kind of course next steps for us for everyone who, or anyone who sees value in this super happy to get feedback DMs are open always happy to schedule one on one calls also to dive into more depth and then looking at next turn of iteration on this.

[00:07:41] Adam Bavosa: Fantastic. Thank you, Bernard. We have a link posted in the development channel to. The forum thread that Web3 Studios and Alastair posted about their proposal. If you have any questions for those two teams, you can unmute your microphone or ask questions in the development channel now.

[00:08:22] Adam Bavosa: Alright, looks like we don’t have any other questions for Web3 Studios and alastair.

[00:08:28] Alastor: And as mentioned, as if after the call you have time to digest and then you read through, we super much appreciate any feedback and interaction that follows. So thanks a lot for the opportunity to quickly present.

[00:08:44] Adam Bavosa: Yeah, absolutely. I think this is very important for the future of the protocol to have. Teams that are part of the community that want to do business development efforts and try and get the protocol integrated with as many third party applications as possible. I think it’s super important. If everybody could check out that forum thread, take your time reading it and reply thoughtfully it would be very much

[00:09:09] AlphaGrowth: appreciated.

[00:09:13] AlphaGrowth: Hey Adam, I got a question if that’s okay. Yes, please. Okay cool proposal really awesome stuff in here. I guess my main question is what would be considered a win from you guys or a KPI that you guys are going after to, cause there’s like a lot of different it’s broad, but like in your mind, getting a KPI or a win, like after, the length of the proposal ran out, what would that be considered like a win from your guy’s side?

[00:09:44] Alastor: Yeah. So the main overarching KPI that we already have stats is increasing assets and TVL for a compound. So I think in the end, everything that we want to do across these granular initiatives, and obviously every initiative will have more granular KPIs and to see if they were effective should feed into increasing TVL.

[00:10:08] Alastor: As this is how this originated, right? Like in the end, we look at TVL and market share where the proposal where the protocol also is versus the market.

[00:10:23] Alastor: Awesome.

[00:10:31] Adam Bavosa: Thanks for your question, Brian. Does anybody have any other questions before we move on to our next speaker?

[00:10:44] Adam Bavosa: All right. Remember, you can always ask questions in the development channel and you can always reply to forum threads at www. comp. xyz. Thanks so much, Bernard and Sam.

[00:10:55] AlphaGrowth: Cool. Thank you guys.

[00:10:58] Adam Bavosa: Alright, our next speakers today are Gauntlet. We have Dana, and I think maybe Paul is on the call as well.

[00:11:04] Adam Bavosa: Welcome.

[00:11:06] Gauntlet: Thanks, Adam. Yep, I’ll be providing a few updates from the Gauntlet side. So this week, we have an on train proposal to decrease comp supply rewards on Arbitrum USDC Comet due to low usage on Arbitrum USDC Comet. DC our utilization and future plans to launch a native SDC Comet on virtual.

[00:11:30] Gauntlet: Besides this on chain proposal in the forums, we propose two options for reward changes on the Polygon USDC Comet. Would appreciate everyone’s input at the poll on the forum. There are two options. One is to decrease rewards and the second is to keep the same rewards for Polygon USDC Comet. We also posted our recommendations for risk parameter, interest rate curve, and incentives rewards for the Ethereum ETH Comet on the forum.

[00:12:04] Gauntlet: Would also appreciate. Everyone’s thoughts in the forum post as well before we move to on chain proposal. Besides that in the past week, we presented two options to the community for incentives and risk parameter recommendations for the base deployment and the community voted with the more aggressive option two and it’s Great to see that the proposal for deploying base has passed today.

[00:12:35] Gauntlet: And we also executed the on chain proposal for a supply cap increase for assets on the Ethereum USDC comet, as well as executed the proposal to pause tail assets on v2. Besides that, every Friday, we’ve been providing market updates covering all the comments on compound. So these updates include graphs and latest data on the market growth, supply and borrow data in time series supply caps, utilization, reserves data.

[00:13:14] Gauntlet: In the coming weeks as alluded to in the last community call, we are continuing to work on recommendations for deprecating B2. We will continue to monitor utilization levels, supply cap usage across all compound comets. And continue to support community initiatives, provide market alerts. So that is all from days from the gauntlet side.

[00:13:42] Gauntlet: I’ll pause here for any questions.

[00:13:48] AlphaGrowth: I have a quick question if you could hear me.

[00:13:51] CommunityMember: Yep. So regarding the proposal to nerf

[00:13:55] AlphaGrowth: the

[00:13:56] CommunityMember: arbitrum rewards. I’m just wondering if you guys know the level of liquidity for the native USDC. I’m wondering if it’s higher currently than the bridged USDC. I’m just worried about the

[00:14:09] AlphaGrowth: market size if that native USDC is

[00:14:14] CommunityMember: liquid enough on the network to make the migration like right now versus in the future.

[00:14:21] CommunityMember: Thank you.

[00:14:23] Gauntlet: Yep. Thanks for the question. I’ll our team will take a look at this. Right now, the proposal is just to decrease rewards on the current Arbitrum USDC Comet. I think we’re, there are plans to look to launch another Comet with the native USDC. But I can get back to the community in the development channel on this.

[00:14:50] Kevin Cheng: Just to answer your question, because I took a quick look on Etherscan. So the bridge USDC has a market cap of 900, 000, 000 on Arbitrum, and then the native USDC has 200, 000, 000 of liquidity. But that’s growing over time. Last time I checked was like, a few weeks ago, there was only 100, 000, 000, so basically increased 100, 000, 000 in the past couple weeks.

[00:15:16] Kevin Cheng: And we can expect that to continue going forward, because Circle has made it clear that they plan to eventually… Remove all liquidity for the bridge USDC

[00:15:28] CommunityMember: understood. Very cool. All right. Sounds good.

[00:15:37] Adam Bavosa: All right. Thanks for the update, Colin. And also thanks for the questions. Does anybody else have any ideas or questions they have for the gauntlet team before we continue?

[00:15:55] Adam Bavosa: All right. Thank you so much, Dana, for your update. I remember that the governance proposal is going to go live in the next day or so. If you are a voter, please go ahead and vote.

[00:16:09] Adam Bavosa: All right. Next we have open Zeppelin. We have Michael. And maybe Jared.

[00:16:19] Adam Bavosa: All

[00:16:19] AlphaGrowth: right. Hello. Hello. Can you hear me?

[00:16:21] Adam Bavosa: Yes, we can hear you, but you’re a little bit quiet.

[00:16:25] OpenZeppelin: Okay. Is this a little bit better? Just moving that closer. Yes. All right. Perfect. So short update today. I just wanted to let everyone know about some of the things we have the backlog and some of the work we’re involved in first and foremost, since the base market deployment was very recently approved through a governance vote it’s now in the timelock and will be Executable by the weekend.

[00:16:52] OpenZeppelin: We are, you might already see in discord that we’ve prepared a new monitoring feed. So we will have monitoring available for base once it goes live. So we’ll be able to watch the activity. This is going to be definitely be. Another welcome mark deployment that will continue to be watching closely.

[00:17:08] OpenZeppelin: You’ll also note that we performed audits on some of the components being used in base that were modified on top of the standard contracts. I think most of that work was done also for for the OP stack or for the optimism deployment, but those are luckily interchangeable as well. And we’ve also been, working closely with labs just to make sure that everything else, including like the scenario testing and other things are as tight as possible.

[00:17:32] OpenZeppelin: We’re looking forward to that and then going forward just a few initiatives for everyone to be aware of that. We are working on in addition to audit. So we have several of the backlog, both from the grant community. As well as things that laps is working on, or that other community members are working on, and we’ll continue to post to provide updates as they come out.

[00:17:54] OpenZeppelin: The, a few of the larger advisory things we’re continuing to iterate on response. And based on some exercises that we ran with the community we have determined that there are some areas where we can improve mainly on just response time and other things. So we’re working with the multisig members to to do that.

[00:18:12] OpenZeppelin: And we’ll be having more updates that we’ll share directly with them. And then later, the community, once the changes have been enacted, and then finally, what was the last thing we are going to be working on broader advisory for basically doing more market deployments. By this, what I mean is there are now more active conversations happening on how to, deploy a new market and the security risks that need to be considered. There’ve been a lot of discussions on linear, for example, on Oracle risks and how those should be accounted for. And we want to be able to pry it just like the way we do for asset listings, we want to be able to provide the community, a set of standards and kind of general things to think about as well as just.

[00:19:01] OpenZeppelin: Operational touch points, such as, ensuring that obviously it changed contracts, get an audit that we get heads up on providing monitoring feeds, but also that we are, there’s broad community agreement on what would be expected before a market or a new chain is ready for a combat deployment.

[00:19:21] OpenZeppelin: So we are going to be sharing. That in the coming month once we have it ready to publish, and we expect that will also be useful for any new market discussions that are still ongoing. We’re also, for example, we are going to be working directly with Vinnia on helping to audit any components that they will be changing for their market deployment when they are ready to put that up.

[00:19:41] OpenZeppelin: And we’re also discussing, the Oracle needs with chain link. And so in general, lots of discussions going on and things that we’ll be posting once they’re also ready for community review and feedback as well. So happy to answer any questions on that. Otherwise we’ll continue to iterate and we’ll have a forum post near the end of the quarter that kind of gives a full update of all the topics we’re working on.

[00:20:00] OpenZeppelin: And if anyone wants an update sooner, feel free to reach out. I’d be happy to share details.

[00:20:08] Adam Bavosa: All right. Thank you so much, Michael. That was a. A lot of updates there. I will comment on the last one there. I think it’s awesome that open Zeppelin will be providing more content for developers to set up their compound three deployment. The content we have at the moment is it could be improved upon.

[00:20:31] Adam Bavosa: I think that having the guide on the forums for migrations is a good start. The recorded office hours where we walk through running those. In GitHub actions was helpful. Kevin and I are Adding some more documentation to the readmes of the Comet repositories. And of course anything that OpenZeppelin is adding there will be tremendously helpful for third party teams that are deploying Comet.

[00:20:58] Adam Bavosa: Thank you for that. Does anybody have any questions for Michael and the OpenZeppelin team? Before we continue.

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[00:21:10] Adam Bavosa: Okay. Remember you can always ask questions in the development channel. Michael and the OpenZeppelin team are hanging out there all the time. So if you have questions about what they’re working on or questions about updates, you can ask them there.

[00:21:40] Adam Bavosa: All right. Thank you. Yeah. Thank you so much, Michael. We’re adding one more speaker to today’s call. We have the folks from AlphaGrowth here. We have Brian and Sharp.

[00:21:55] AlphaGrowth: Cool. Thanks Adam. A while ago AlphaGrowth Brian from AlphaGrowth, founder of AlphaGrowth. We basically help connect protocols and chains. Most recently, we have helped the Kava ecosystem bring over a hundred different dApps, go multi chain from various chains throughout the blockchain industry.

[00:22:18] AlphaGrowth: And in our adventure to help Kava bring more protocols to their chain we got in touch with Compound. Understood what, a compound was doing and saw that the grants program, we went through a discovery session around the grants program and found that there was things that we could potentially create more impact for compound in terms of growth, in terms of growing TVL user base market pools.

[00:22:46] AlphaGrowth: And what I’ll, what I will say is that every single chain we talked to are, we’re talking about 70 different chains. There’s another 30 to 40 chains launching. Over the course of the next year, and they all want compound, right? So if you look from that category that, the work that Oakland Zeppelin is doing and Gauntlet’s doing around, how do we, how do you process that?

[00:23:08] AlphaGrowth: How do you manage risk? How do you understand what is the infrastructure involved? That’s what we’ve been doing for chains to bring protocols to chains. For the last two years, right? So we’ve helped out near we’ve helped that Aurora right now we’re engaged with Zeta Chain Fuse, Kava we’ve, helped out Mantle in the past with a couple different introductions.

[00:23:31] AlphaGrowth: And so we’re, our job is to like ease that burden. So we put up a discussion and potentially pushing it out as a proposal. on to help manage that process and push that process forward. So instead of hoping for inbound for grants or inbound for chains to put up proposals, do a risk management analysis, do a chain analysis on exactly which chains are viable for the compound protocol.

[00:24:00] AlphaGrowth: Analyze which markets and token markets are available for the for the protocol and then have an outbound approach and start to attract at first the chains with, the most TVL, the most attention, the most kind of brand around them that are also like viable and instead of waiting for change to inbound and be confused about the process, we can help be stewards in pushing forward and communicating the different infrastructure needs.

[00:24:29] AlphaGrowth: The different risk management needs on either their core token or other local assets on the chain to help drive compound growth across a multi chain process. This is pretty much all we do is connect protocols to chains. So getting into the nitty gritty details, understanding whether they have the right RPC infrastructure the sub graphs, the indexers, multi sigs.

[00:24:54] AlphaGrowth: How do you bootstrap liquidity on the said pools, making sure that there’s a negotiation arrangement between the chain and their currency to provide initial liquidity loans or liquidity incentives out of the gate helping work with the different teams at Gauntlet, OpenZeppelin to understand the scoring possibility if the risk is too high and then if the risk is too high, then, maybe the chain needs to bring more liquidity as incentive to de risk or an insurance fund or something like that.

[00:25:20] AlphaGrowth: Yeah. And crying, trying to make the process more outbound instead of asking for somebody from the BD team of Arbitra or somebody from the BD team of a CK sink to come in. And then fill out a proposal. Making it a process a little bit faster, a little bit more transparent, and then helping the process move smoother.

[00:25:45] AlphaGrowth: And that would be our goal, that would be our number one priority goal is, more chains, more pools, more markets. Making sure that they’re, the risk is, the risk reward scenario is there. And then the secondary KPI, our goal is we have over 2, 800 projects. On the alpha growth platform right now and developers looking for grants and looking for things to build and so helping supply a little bit of growth around the different needs for the RFPs for the grants program.

[00:26:19] AlphaGrowth: We, that would be our unique value proposition is going more outbound helping the grants program with outbound. And I think the last part of the proposal would be education materials around and content distribution around the new pools and the new chain launches. So effectively, when a new chain launches, creating up with a a go to chain plan to go to market plan for that specific chain getting content created, having both the chain and the assets on the chain.

[00:26:53] AlphaGrowth: Do AMAs, do educational resources, potentially getting other promotional materials to push out that is discussing the viability of the new markets that are now available. And that’s what we put together. So this is our bread and butter. This is what we’ve been doing for the last two years. We’ve done it for, we’ve gotten.

[00:27:13] AlphaGrowth: Over 150 projects grants. We’re now working with 10 different chains and they all want Compound. We just have to figure out a way to process them in the most strategic order for risk based returns and the amount of TVL and attention that Compound deserves. So that’s why we put our proposal and discussion up there.

[00:27:33] AlphaGrowth: Please feel free to ask questions, engage, and excited to hear feedback.

[00:27:43] Adam Bavosa: Fantastic. Thank you so much, Brian. We have a link to the proposal, which Brian was talking about in the development channel. Really happy to see firms competing for resources from the doubt to expand upon Business development for the protocol. I think that decentralized systems have this issue where they’re like, isn’t it really a face and having these firms that work with the protocol directly that can provide that human communication to, network and make sure that integrations can happen is very important.

[00:28:19] Adam Bavosa: You can check out those two forum posts on the forums. I got the links in the development channel so you can compare the proposals from the two firms that spoke in today’s call and make your choice on which one you want to support. Provide your feedback there so they can both proceed with I guess their governance proposal that they talked about in their Threats.

[00:28:42] Adam Bavosa: Does anybody have any questions or comments for alpha growth?

[00:28:47] AlphaGrowth: So I’ll throw out there like good feedback is cool, but like bad feedback is even better, right? Because we want to figure out what the community wants. So please, if you have concerns, issues, anything like this nature, please let us know.

[00:29:04] AlphaGrowth: Yeah,

[00:29:05] Kevin Cheng: I do have a question. Basically, I guess the main bottleneck for, deploying on new chains or getting new markets up is actually. On the engineering side so I’m just taking a look at the the form post doesn’t look like you guys have anyone on the developer side. I’m curious where, those resources would come from because like just talking to other teams doesn’t really get us onto other chains, right?

[00:29:33] Kevin Cheng: There needs to be heavily heavy investment on the engineering

[00:29:36] AlphaGrowth: side for that to happen. Yeah, great question. What I would say is going through the process and kind of conversations working with Kava. It’s understood that, Kava doesn’t want to potentially launch Compound themselves.

[00:29:50] AlphaGrowth: What they do is they hire a third party engineer. And right now, Kava does not necessarily have the, all the infrastructure that Infura and Chainlink Oracle’s available to launch. So what they do is they have a third party engineer launch it for them on their behalf, they pay this third party engineer to do that, we work with them.

[00:30:11] AlphaGrowth: That’s just one example. So we would have to go out to the different chains, figure out what the cross chain messaging is going to be for the governance support. If it’s, wormhole, if it’s layer zero. Figure out which is easily available, do the analysis chain by chain to figure out who has this infrastructure embedded, who wants this and who’s willing to put forward the engineering resources to launch the contracts in an easier way from their side and then get approval from the governance.

[00:30:43] AlphaGrowth: To launch right after the risk assessment and what I would imagine is that the chains themselves are launching the contracts with approval from the compound Dow, making sure everything is aligned so it would limit the amount of resources that the compound labs would have to expend to do this.

[00:31:07] AlphaGrowth: Does that help clear stuff?

[00:31:11] Alastor: Yeah. Sorry about that. Yeah,

[00:31:15] Kevin Cheng: that kind of clears up, at least the understanding is Alpha Growth wouldn’t have the engineering resources, it’s on the

[00:31:23] AlphaGrowth: The chain, the chains team right, to figure that out. We have partners that we can pull in, and we could just use the partner that helped launch the Uniswap contracts for Kava, like we can pull that team in.

[00:31:35] AlphaGrowth: But then the chain itself would be the one burdening the cost infrastructure there.

[00:31:44] AlphaGrowth: I do have a follow

[00:31:45] Kevin Cheng: up though, but I think Bernard had

[00:31:47] Alastor: something. Yeah, just on our end also to give our perspective on how we would do this on how this proposal originate originally came about was in, in collaboration with the wallpacer team who spun out of TrueFi. And has been contributing to other proposals or protocols as well.

[00:32:08] Alastor: And then secondly, we’re close with Equilibria team who are behind Venereal Perennial and I think have a history in contributing for Compound over, over a couple of years already. So on our end, it’s basically collaborating with high quality devs to take up the mantle.

[00:32:30] Alastor: And finding the gaps where we need to plug them in.

[00:32:37] Got

[00:32:38] Kevin Cheng: it. Cool. And just one more follow up, so this is more of a personal opinion. But from my point of view, I’m more interested in like integrations with. Other dApps, like getting other dApps to integrate into compound or getting, new collateral assets or new markets up for new types of barring use cases, rather than launching on new chains, just because in a couple more months, we’ll be on most of the major L2s already.

[00:33:04] Kevin Cheng: And The other chains that want Compound on, it benefits those chains more than it does for the Compound DAO. So that’s just a bit of feedback. I want to see more about what are some ideas of growing Compound outside of just launching a new

[00:33:17] AlphaGrowth: chain? Cool. Thank you for the feedback.

[00:33:22] AlphaGrowth: That’s rad. One of the concepts we have in there, there’s I think there’s only two or three lines in there is this concept of a embedded DeFi where there is a new type of kind of distribution mechanism in which Instead of having the user come to compound, but pushing compound as a potential and embedded application within the different assets and the websites and the apps of the different assets that compound supports.

[00:33:54] AlphaGrowth: And also obviously the assets in token projects, it added utility as soon as that they have a money market embedded with it. And there’s a, we’re tracking around 41, 000 different token projects now in our data. And so understanding the, one of the major portions is understanding the risk assessment from Gauntlet.

[00:34:18] AlphaGrowth: around which tokens would be viable as new markets on those chains. And, we can provide the data. Gauntlet has data. And once they hit a certain threshold, we would then aim to go after that particular asset and sit and come up with a deal for them to say, Hey, bootstrap liquidity, you’re already on this chain and we can create a new market for you.

[00:34:41] AlphaGrowth: On top of that, you can embed these money market contracts right into your existing app, right into your existing website. It’s not explicitly, but I think embedded DeFi. Is a future that would drastically help define general and user adoption as well as the growth and expansion of compound.

[00:35:05] AlphaGrowth: Cool.

[00:35:06] Kevin Cheng: Thank you for your answer. Sorry, I have one more follow up. Cause I’m looking at like the total costs or the initial proposed costs for this. It’s 18, 000 comp. That’s that’s pretty much like a million dollars for six months. For RFP based grant programs, right? You would expect most of those to go to fund the individual RFPs, right?

[00:35:28] Kevin Cheng: Because there’s no developer resources. You’re going outbound and you have to pay people to, take on these tasks. But it does look like this is getting all of these funds are being allocated to the to alpha growth. Can you just clarify, how the funds are being spent?

[00:35:45] Kevin Cheng: How do you get other people to actually build stuff

[00:35:49] AlphaGrowth: for Compound? Yeah, that’s great. So in terms of one of the, I’m going to be very, try to be a little bit political here. We analyzed the current grants program. We saw that their inbound deal flow was not sufficient to really bring. The high enough quality or an expansion of ideas, right?

[00:36:18] AlphaGrowth: I think there was a time where we were considering to go and compete directly against the current existing grants program and go within that methodology. But in, we decided to go more for after conversations with quest book and other people, we decided to go for more of a plurality approach and say, hey, there was going to be things that need to be built in this growth.

[00:36:43] AlphaGrowth: Strategic road map. So let’s take an approach that is more cooperative and, there’s things that we think will need built. We can deploy some grants for that or bring you and say, Hey, we need this grant deployed to build this particular use case and work with the quest book team on that on the multi chain aspect.

[00:37:03] AlphaGrowth: About one third of the comp in the proposal is for liquidity incentives and Marketing and understanding short term liquidity loans to get these pools bootstrapped, right? Either doing a token trade, figuring out what the liquidity incentive structure should be, how much token should the new chain bring, how much token should the new asset bring to get the ball started and rolling.

[00:37:32] AlphaGrowth: Obviously, most of these will be loans. Some of them will be setting up localized pools to bootstrap a localized pool on a new chain. So that if somebody is getting comp on the new chain, there’s a place to trade it without going multi chain and bridging. It’s, when you have Localized comp and enough liquidity in that space, you can start to do different style vaults, which become a lot more compounding and a lot more hedged structured products.

[00:38:01] AlphaGrowth: So you do need local comp liquidity on the chain, on the new chain, in a DEX, to do some of these other stuff. types of structured products. And then we had a budget line item in there for marketing, right? And one of the issues that, I’m in this space where I’m analyzing defy all the time.

[00:38:22] AlphaGrowth: We, until six months ago, was not really aware of all the advancements that were occurring in comfy three. And I think if somebody that’s in the business doing You know, supply and liquidity, doing pools, et cetera, et cetera. It doesn’t know about what’s going on with comp. There’s so many other defy users that don’t know what’s going on with comp.

[00:38:43] AlphaGrowth: And so that’s an issue, right? So we have to partner with the different assets. We have to partner with the different chains, but then also help distribute that communication, those educational materials, or if a vault or structure product is built building on top of comp because of new access to new assets or new access to new chains.

[00:39:03] AlphaGrowth: We then have to help with them with the materials so that the funding and TVL trickles down, right? You can build a product, you have to do the risk management and asset asset verification, risk assessment. Then you have to distribute to the larger audience that this is now available then to unlock some other structured products.

[00:39:29] AlphaGrowth: You have to and bootstrap liquidity. That is the reasons behind the cost structures, the line items. We would be employing six people to, to work on this. And right now we’re a nine person team. Three to four people would immediately go on this. We can start introducing chains and working through it as soon as it passes.

[00:39:54] AlphaGrowth: And we would probably adding two to three more resources to the project full time to effectively push comp out and start the conversations and structure that.

[00:40:08] AlphaGrowth: Okay,

[00:40:09] Kevin Cheng: got it. Yeah. Thanks for providing more clarity. I think yeah, I do have a bit more feedback, but I’ll probably just type it up in the forum just so like other people can also take a look in and respond there. And I also don’t want to drag out this meeting too long. But yeah, thanks for presenting and answering

[00:40:27] AlphaGrowth: my questions.

[00:40:28] AlphaGrowth: Thanks Kevin.

[00:40:34] Adam Bavosa: Yeah, so it sounds the plan for alpha, if alpha growth was to proceed with their proposal and get it approved by the community they would work together with. Questbook to have like a co effort of grants plus the bd efforts that alpha

[00:40:52] AlphaGrowth: growth provides Yeah, I would say a primarily focus on the bd and outbound efforts for new chains new markets And then things that need to be built along the way We would you know help find providers and push back to questbook.

[00:41:10] AlphaGrowth: Got it. Okay. Thank you for summarizing I guess just one comment like because

[00:41:17] Kevin Cheng: usually you pick either rfp or a quest broke look like platform where people submit requests. It’s weird that we’ll have both. I think that kind of,

[00:41:29] CommunityMember: Can I make a comment here? So I’m, I just wanted to give a little feedback here too, so it’s all good.

[00:41:37] CommunityMember: First, my first question is, with the 18, 000, does that mean you guys are then extending comp from that 18, 000 to the people who you’re giving grants? That’s how you’re thinking

[00:41:46] AlphaGrowth: it would work? So there’s going to be, if you look at the breakdown, there’s three sections.

[00:41:54] AlphaGrowth: There’s about 6, 000 comp that we see that we would need. And, this is negotiable and would gladly take feedback from the community on how to structure this differently, but getting it. That makes sense. Yeah. Getting a chain on board, when they launch, I imagine that the treasury of the chain will want to put a lot of liquidity into the initial pool, bootstrapping that liquidity into the pool with only their side of the their side of the pool or the market would, cause issues.

[00:42:28] AlphaGrowth: So effectively creating loans with the different chains, once a pool is created. And then also creating localized liquidity on that chain to trade comp as well is a big decision. Yeah,

[00:42:43] CommunityMember: The thing I’d like to point out is the outbound style, it takes power away from compound. So just thinking about systemizing this process, I do think you’re onto something as far as visibility for the grants program and expansion.

[00:42:58] CommunityMember: So maybe I don’t know other people will provide feedback in and that will be good, but consider some alternative strategies maybe some way of, this outbound thing is a little, it’s not very transparent, so it could be, just increasing the visibility of the inbound stuff and getting more people who you think would be great to submit proposals.

[00:43:25] CommunityMember: Or review the RFPs. So I just wanted to touch on that and appreciate your info. It’s all

[00:43:30] AlphaGrowth: good. Yeah, I appreciate that. To be really straightforward, most of the BD leads and the ecosystem leads at these chains, their job is to negotiate and cut checks, right? And so compound by not necessarily going outbound or having somebody to negotiate the half and making it fully inbound process.

[00:43:51] AlphaGrowth: Is missing out on a lot of different potential opportunities to expand to other chains into new markets, right? So going if you go to the head of an ecosystem They’re not proposal writers all the time, right? They’re not forum. So Maybe and within this process we would be helping them write the proposal that would match You know what gauntlet says in terms of risk assessment what opens a splint says in terms of risk assessment And what tokens would be on there and be able to negotiate that and potentially have an insurance fund or what types of grants or liquidity that they would be to make it more attractive.

[00:44:29] AlphaGrowth: They need help in that process, right? As well. So it’s synergistic getting compound to more markets and more chains. But also they, most of the time, what they do is they just write checks. Helping those two parties meet and speed up the business development process, it would be our job.

[00:44:50] AlphaGrowth: And that would be our KPIs. How many chains, how many new markets that we were able to bring in, negotiate and make it win for both sides.

[00:45:05] Alastor: Yeah. And I think on our end, just, as our approach is slightly different. And that’s also, a bit more, I would say light touch or lean in the regards of, okay, what we want to establish is basically the analytical fundamentals of which strategic directions to go at versus actually executing.

[00:45:29] Alastor: The outbound. So I think that’s a, it’s a big difference in terms of size and scope of our proposals and how they’re positioned.

[00:45:49] Adam Bavosa: All right. Thank you so much everyone for the discussions today. I think that might be all we have unless anybody has any other questions or comments for. some of today’s speakers. I know that there’s a lot of discussion today.

[00:46:05] Adam Bavosa: Okay, great. If anyone has any more thoughts or feedback or questions, please feel free to go over to the forums, www. comp. xyz, and reply thoughtfully to any of the forum threads related to today’s discussions. I posted links to them in the development channel.

[00:46:27] Adam Bavosa: Looks like Doe is trying to ask a question. Let’s

[00:46:41] Adam Bavosa: see, Doe, you can unmute your microphone.

[00:46:47] Adam Bavosa: We can’t hear you if you’re trying to speak.

[00:47:00] Adam Bavosa: Okay. Doe, why don’t you type up your replies in the forum threads? And give everyone feedback. That would be awesome. I’m going to, yeah, let’s wrap up today’s call. Thank you so much everyone for coming. Thank you for our speakers and also our thoughtful conversations. You can always ask questions in the development channel, or make a forum thread or reply at www.

[00:47:29] Adam Bavosa: comp. xyz. Thanks for coming today. We’ll reconvene again in two weeks at the same time, 9. 30 Pacific time. Thanks for coming. Enjoy the rest of your Wednesday.

A recap of today’s Compound community call:

  • Alastor + Web3Studios and Alphagrowth present their plans for the Compound Grants Program 3.0, and ecosystem growth strategy

  • Gauntlet discusses recommendations

    • to decrease COMP distributions for the USDC markets on Arbitrum and Polygon
    • to more aggressively deprecate the v2 market in favor of v3
    • in weekly Compound III market analyses posted on the forums
  • Open Zeppelin aims to create a set of standards to operationalize Compound III deploy audits for developers and the community

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