Dear Compound DAO,
It is widely recognised that soliciting competitive bids through an open tender process often leads to better commercial outcomes. Given the substantial controversy surrounding this proposal—particularly regarding its value for COMP holders—would it not have been prudent to consider offers from additional parties? At Euler, we believe we could have provided more attractive commercial terms, potentially including support through our own incentive structures.
The market design proposed for Morpho could, in fact, be replicated seamlessly on Euler today. So there is no technical reason not to choose Euler. Like Morpho, our platform offers immutable, risk-isolated pairs, reactive interest rates, and aggregated asset management vaults. These can be deployed out of the box today, requiring no additional development work.
However, whilst isolated-pairs can be a powerful solution to create new markets, they have yet to prove themselves outside of a bull market or in conditions where there aren’t heavy incentives on both the supply and borrow side. Only more capital efficient models have proven themselves to work in both bull and bear, and with or without incentives. Euler’s flexibility would allow Compound DAO to not just create isolated pairs, but also recreate Compound-style Comet markets, or implement more capital-efficient clusters of vaults (similar to a mini Aave), or even develop a fully bespoke solution tailored to your needs. Our protocol also offers numerous other advanced optional features, including vault-level governance, customisable hooks with access controls, firewall solutions, built-in swapping functionality, fixed-rate options, and much more.
Don’t be a stranger. Many of us at Euler were inspired to get started building in DeFi because of your pioneering protocol. Compound’s design today may have some drawbacks, but all money market designs have trade-offs. We stand ready to help make Compound great again if the DAO ever wants to consider bringing its partnership with Gauntlet - also one of our partners - over to Euler.