Compound Extensions

Introducing Extensions
Starting today, users of the Compound interface have access to a new feature: Extensions. Extensions are optional add-ons, built by community developers, that enhance the Compound experience.

When you enable an extension, it can leverage Compound III’s advanced account management functionality to add new features to your account–such as automation, composability with other DeFi protocols, or position management. Or, it can run without requiring any permissions, and simply provide information–such as liquidation alerts.

This is an experimental, entirely new approach to the DeFi user experience, and opens up a new frontier for community developers. Rather than re-creating an interface, you can extend the primary interface.

At launch, there are four extensions:

  1. Advanced Transactions – allows users to bundle multiple actions in one transaction
  2. Position Migrator – allows users to import positions from Compound v2 and Aave v2 into their Compound III balance
  3. DeFi Saver – adds sophisticated tools to manage your Compound III position
  4. Comp.Vote – a gas-free voting experience

But these are only the start; there are dozens of extensions waiting to be built, limited only by your creativity. The newly relaunched Compound Grants Program is a great path to develop your idea into an extension.

Developing & Integrating Extensions
Each extension runs inside the Compound interface in a sandboxed iframe. The Extension Repo contains the base code for implementing an extension, as well as a curated list of extensions.

There are not yet standards for including an extension in the Compound interface–we expect the community to help develop the guidelines for approving or accepting a new extension, including security audit requirements for new contracts.

How Do I Use Extensions?
To interact with Extensions, you’ll need to visit the new Extensions section of the Compound interface. Extensions are specific to the connected wallet, meaning if you use multiple wallets to interact with Compound, you’d need to enable the Extension on each wallet. After connecting a wallet, users can interact directly with each Extension. Some Extensions must be enabled to work, while others have simple interfaces to interact with them directly. Extensions are always able to be disabled.

If you have any questions, please join the community in Discord.

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Love this!

Do you have a list of ideas for more Extensions that could be created?

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Great question @roman – I’m extremely excited by the amount of quality extension ideas discussed by the community; lots of great starting points that work both with and without an Operator. When referring to an Operator, I’m referring to the concept of a smart contract designed to manage your account balances using the Compound III account management functions. Here’s a list of ideas we’ve discussed or seen in community channels:

Operator Required

  • Collateral Swap - replace one asset with another using Uniswap, etc.

  • Liquidation Protection - authorize a contract to liquidate your position shortly before liquidation by protocol to limit liquidation losses.

  • Account Auction - set a value at which you’d sell your entire account; if it rises above there the free market can buy it.

  • Position Importer - import collateral or borrows from another protocol such as MakerDAO.

No Operator

  • Liquidation Warnings - a notification when your position is close to liquidation. Could create subscriptions via SMS, Email, Discord, etc.

  • Compound Tax History - create a simple statement totalling all Compound activity with an associated wallet, with relevant tax information.

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Hi @jayson!

I’m on the team over at FujiDAO, who is already building on top of Compound. We built the first money markets aggregator on Ethereum in a hackathon last year, and would be interested to see how we might be able to get involved with building an Extension as a part of what we are building with our v2. If you have not seen our dApp, you can view it here. In addition, you can review our documentation page as well.

Fuji’s v2 takes some of the existing functionality of Fuji’s v1 (borrowing aggregator), but enabling this to be done completely cross-chain, and can also aggregate the lenders- so depositors are able to get the best yield, as well as the lowest interest rate for their onchain loans.

Some examples of what we would be able to do with Fuji, and potentially with Comet, are:

  1. Depositing on Chain A, and taking a loan out on Chain B
  2. Depositing on Chain B, to have collateral on Chain A
  3. Collateral/Debt swaps
  4. Have specific tranches for what markets you would want exposure to
  • If someone just wants to have exposure to only the Compound deployed chains, you can have vaults that serve only the Compound V2 and V3 markets.
  1. Aiding with the process of migrating TVL from Compound v2 → Compound v3
  2. One tap leverage
  3. Self repaying loans

If this sounds interesting to you and the Compound community, we would love to talk further! I’ll be joining your Discord, with the Discord handle: theshark#4172, where I will speak directly to your community. Alternatively, you can speak to me directly on Telegram (@ansteadm), or Fuji’s Discord server.

Happy to answer any questions you might have and hope to see us working closely together in the future!

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Hey @jayson appreciate your response. We are considering building “2. Position Migrator”.

Would Compound be potentially interested in supporting the work with their Grants Programme?

I noticed there is a new grant programme proposal (passed in Dec 2022) but cannot find anything in Questbook yet.

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Hi @roman - The new grants program is set to launch on Jan 16th so you should see details populate in Questbook by that point. @harsha is leading up the program and can answer questions in the meantime as well.

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Hi @roman , @cylon is right. We are going live on 16th January. You should be able to see the program up for applications on 16th January. @allthecolors will be the domain allocator for this project. Let me know if you have any questions in the mean time, happy to answer them :slight_smile: The program will have more specific details about the proposal drafting process.

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@harsha @cylon thank you for providing the context. Will keep an eye on the program after Jan 16th to see if building Compound Extensions is part of it!

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