Preamble
Type: Multichain Deployment
Title: Deploy Compound v3 MVP on Neon EVM Mainnet
Author: @UnQuid from Neon Foundation
Introduction
Point of Contact: @UnQuid
Summary: We propose the deployment of Compound v3 MVP on the Neon EVM Mainnet, expanding Compound’s presence and enabling access to untapped users, liquidity, community and ecosystem of Solana.
Background
Neon EVM is a fully compatible Ethereum environment solution built on the Solana blockchain which makes it the first parallelized EVM with direct access to Solana liquidity. Neon EVM allows developers to deploy Ethereum dApps on Solana and access its native ecosystem and network benefits: low fees, high transaction speeds, and parallel transaction execution capabilities without changing their codebases. Neon EVM currently has interoperability with Solana SPL tokens and the plan is to develop full interoperability with Solana smart contracts as well in late 2024.
Solana is a thriving blockchain with a strong DeFi ecosystem and a large user base. Solana ecosystem took a hit due to market conditions and FTX situation in the last couple of years as TVL fell from all-time high of +$9b to +$250m in July 2023 but since then it has shown strong growth and it’s one of the fastest growing ecosystem across major blockchain networks. Current TVL is +$4.5b making it the fourth-largest chain by TVL and over 20 million monthly active addresses.
Motivation
Compound v3 deployment on Neon EVM will enable Compound to access the deep liquidity on Solana and enables Solana ecosystem users to get access to the leading lending-borrowing protocol through Neon EVM. The platform will allow Compound to deploy on Solana without any reconfiguration of the Compound v3 codebase and hence without incurring major development efforts and costs to the Compound DAO. Compound v3 has already been successfully deployed and tested on the Neon EVM Devnet.
Compound’s expansion to the largest non-EVM ecosystem will further reinforce its place as the top liquidity market on-chain and open up possibilities for growth and collaboration between the Compound, Solana, and Neon EVM communities. This deployment is expected to substantially reduce costs and better scalability in comparison to EVM networks, while also providing users with access to Solana’s liquidity and the overall ecosystem. As Solana gains momentum as a prominent blockchain platform, the integration of Compound’s advanced lending and borrowing protocol could further catalyze the DeFi ecosystem on Solana and Neon EVM. This deployment provides an exciting opportunity for Compound to capture the market share of Solana’s DeFi ecosystem and grow the user base and community of the protocol, increase TVL, and protocol revenue.
Specification
This proposal suggests deploying Compound v3 on Neon EVM Mainnet with limited deployment of initial assets and conservative risk parameters. This approach will enable Compound to strategically establish a presence in the Solana ecosystem while minimizing risk exposure.
The proposal suggests three collaterals (SOL, mSOL, jitoSOL) and one borrowable asset (USDC). We encourage the Compound community and risk service providers to provide their feedback on the proposed assets and their risk parameters.
Neon EVM is also working on its own points program to attract users and builders to accelerate the adoption of the network. We will include Compound in our Neon Points program once launched to incentivize user activity on this deployment with boosted points.
Infrastructure
Documentation: Neon EVM Docs
Compatibility with Ethereum RPC endpoints: Neon EVM supports almost all standards. Here is the link to supported JSON-RPC - Neon EVM Docs
Indexers: theGraph
Oracles: Chainlink, Pyth
Wallets: Metamask, Ledger and other EVM network wallets.
Block explorers: NeonScan, Blockscout
Address formatting: It is the same as the standard Ethereum address.
On-chain multi-signature infrastructure: Friendly fork of Gnosis Safe.
Cross-chain Interactions: deBridge
NeonPass: NeonPass links Solana and Neon EVM to provide a smoother EVM-compatibility experience for end users (https://neonpass.live/). NeonPass is the revolving door of liquidity between Solana and Neon EVM. NeonPass is not a conventional bridge where assets are wrapped but it acts as a two-way transfer tool for bringing assets in and out of the Neon EVM platform. It simply applies an ERC-20 interface on SPL tokens, which itself is a Solana smart contract directly connected to the network.
Copyright Waiver
Copyright and related rights waived via [CC0 2]