Compound Protocol Plan for Shanghai Upgrade

Simple Summary

With the Shanghai upgrade coming, Gauntlet would like to kickstart the discussion around the potential actions the Compound community can take. At a high level, the Shanghai upgrade would enable staked Ether withdrawals and thus can have risk (and growth) implications for Compound markets. We are taking steps to proactively conduct analysis but wanted to welcome community feedback in the meantime. We also would welcome thoughts from the protocol’s contributors, including the technical contributors, as Gauntlet’s analysis will focus on the market risk rather than the smart contract risks.

Due to the potential complexity of the topic, we hope that the community will find this thread helpful in the coming weeks for efficiently organizing discussion.

Next Steps

Welcome thoughts from the community.


The stETH Listing Proposal was posted on the forum 22 months ago, and currently, Compound does not yet support stETH. Before discussing the Shanghai Upgrade, do we need to consider the efficiency of implementation?

It is expected that after the Shanghai Upgrade, stETH and cbETH will still not be added to Compound V3.

I am not complaining or blaming anyone, we should reflect on this issue, 25% of the steth is locked in Aave and it adds a significant amount of protocol revenue for it.

At the same time, I hope Gauntlet will not repeat the mistakes of MoonWell on Compound.

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