Consistent Markets, and collaterals on other L2s

Proposals
1

In 2024, we witnessed significant progress in expanding markets and collaterals(thanks to Alpha Growth for their BD efforts).

The addition of new markets has been a relatively lengthy process, largely driven by a pull mechanism. Most markets are operating at over 90% utilization, highlighting their strong demand and relevance.

Some standard markets applicable to most L2 chains include:

  • USDC
  • USDC Bridged
  • USDT
  • ETH

For each market, a default set of collaterals should be enabled, including COMP, unless there are red flags, such as issues with availability on DEXes.

At DoDAO, we developed an Asset Analysis Dashboard (accessible here) to facilitate Level 1 analysis of assets.

DoDAO can collaborate on creating an initial list of L2 chains, markets, and collateral assets that can be added to these markets. This groundwork aims to support Alpha Growth, Gauntlet, and other service providers in streamlining their efforts.

Our goal is to significantly reduce the time required for market selection and deployment—from weeks or months to mere days or weeks.

A standardized set of markets and collaterals can enhance the overall user experience and support easy integration for projects building on top of Compound.

2 Likes
2

this makes sense to me

3

in the COMP Everywhere proposal, we recommend that instead of relying on COMP LP Pools to process liquidations for COMP Collateral – we absorb that COMP into the reserves of each Market.

We’d like to see collateral caps for COMP set such that each market reserve can handle absorbing liquidated COMP.

This is an important design decision because listing COMP as collateral on markets that don’t have a ton of COMP liquidity, gives us an opportunity to build that liquidity through structured products.

In the forum post linked, I describe a vault strategy which is focused on building DOLA - COMP LP, and the advantages to the Compound Treasury, as well as Inverse Finance.

We need COMP listed as a default Collateral on all markets in order to initiate these strategies.