Thank you to everyone who was able to join the community call today! Please find a link to the call here. I’ve posted notes from the call below:
Compound Developer Community Call Notes
Wednesday, July 28, 2021
Getty Hill - Asset Listing Update (starts at 1:04)
Getty provided an update on the process of adding additional assets to the Compound Protocol. This discussion involved two proposals, prop 53 and prop 54 [links], which aim to add MKR and AAVE, SUSHI, and YFI, respectively. Each asset will have a 0% collateral factor, a 25% reserve factor, and JumpRateV2 interest rate model . Borrow caps will vary among the assets and are as follows: MKR - 25k, Aave - 60k, yFi - 1.5k. You can read more about the new asset listings on the accompanying forum thread
Arr00 - Address Whitelisting for Governance (starts at 5:20)
Arr00 introduced a feature that would create a whitelist of addresses which could propose improvements. In the status quo, long-standing and trusted contributors are still required to rally 65k COMP tokens in order to propose improvements to the Compound Protocol. Arr00 explains that having a whitelist of addresses voted on by the community would greatly increase the proposal timelines for active protocol developers. As a safeguard, the community multisig would be given the ability to cancel proposals. Additionally, whitelist status will have an expiration date, after which contributors will have to request an extension.
TylerEther - Isolated Markets Oracle (starts at 9:30)
TylerEther discussed an oracle system which aggregates multiple DEX’s, as a first step in the creation of a permissionless listing of isolated market assets [link]. The current Chainlink oracle system only supports so many assets and pulls prices from Uniswap v2. In order to support a broader range of assets, an oracle is needed which can pull from multiple sources. The proposed oracle could pull from Uniswap v1, v2, v3, and Sushiswap. Tyler is continuing work on the oracle to streamline efficiency and reduce associated gas fees. While isolated markets are still a work in progress, questions from Getty and Robert revealed that the high level view would reflect a similar asset pair lending/borrowing scheme as employed by Uniswap and Sushiswap. You can find more information regarding this ongoing project here.
_neo - Tiramisu’s Compound Integration (starts at 15:20)
_neo discussed a wallet application called Tiramisu that won an award at the recent HackMoney Hackathon. Tiramisu offers a digital wallet for individuals to store their local currency as USDC. This USDC is then automatically lent out on the Compound protocol. These funds are always available and constantly growing at a rate far higher than traditional bank offerings. Additionally, Tiramisu has a built-in payment layer allowing users to spend directly from their Tiramisu wallet using IPFS and QR codes. More information about Tiramisu can be found in the whitepaper.
Max0x - Backd’s Compound Integration (starts at 20:50)
Max0x announced the upcoming launch of Backd in mid-August. Backd will be integrated for liquidation protection for Compound users. Borrowers will be able to earn yield while protecting their loans from liquidation. Borrowers will also be able to increase leverage and post less collateral on their loans all while continuing to mitigate their liquidation risk. Max0x also believes that the Backd integration will bring a new way for Compound users to leverage or hedge their assets. Backd does this with its novel ‘reactive liquidity pools’ which react to user’s positions and market conditions. Participants will earn Backd governance token rewards and can register their Compound loans to be topped up when the loan to collateral ratio reaches customizable risk parameters. Deeper explanations can be found on their website or on their fact sheet.
Allthecolors - Should Compound Retroactively Airdrop Tokens to Early Users? (starts at 29:55)
Allthecolors continued an ongoing discussion on a very popular forum discussion, “Should Compound retroactively airdrop tokens to early users?”. As part of the third round of Compound grants, allthecolors worked to compile a list of early users and sum their total interest earned or borrowed. He described a variety of developments he and additional community members have been exploring including: potential distribution shape parameters, implementation of a proposal to governance, and mechanisms which could power a safe distribution of tokens. Arr00 raised the concern that the discussion is centering around how to distribute tokens before the discussion around if the distribution should take place has been decided. Allthecolors explained that the developments do not presume the proposal will pass but simply aims to add options for debate should the community decide to proceed. The conversation will continue at next Wednesday’s Community Call.