Draft for Compound Grants Program 3.0
Preface
Compound Grants Program 2.0 is reaching towards its conclusion. AlphaGrowth took the initiative to review and analyze CPG 2.0. The question to answer is “how can we help the Compound protocol” with Grants and Ecosystem Growth. Over the last 2 months we were very thankful to meet and engage with @adam , @arr00, @pgov , @pauljlei, @JacobPPhillips, @ignaciorsg.eth, @michigan_blockchain. All the community members who gave feedback on CPG 1.0, CPG 2.0 and areas of focus for Compound, thank you again. What we found is that Compound needs a small grants program, but also needs a growth team. Grants to build are good, but execution and expansion is better. We know this will help the Compound protocol and ecosystem.
Framing the Conversation
With eyes on the next chapter of Compound Grants program, AlphaGrowth conducted and will continue to conduct discussions with Compound community members and delegates to understand the needs of the ecosystem. Our aim is to help the Compound protocol grow by implementing a detailed plan for expansion and RFPs.
For protocol expansion there are 2 high level ways to scale Compound, vertically and horizontally. For vertical expansion this includes more products & pools with a concentration on helping existing users to further engage with Compound protocol. For horizontal expansion, the concentration is around growing the pie. With specific concentration on tooling for new users and a multi-chain expansion plan.
After Initial positive feedback from multiple delegates who have experience in contributing to the Compound grants process, we are proud to start a discussion on CPG 3.0 with the extended Compound Community. Below we have created a draft list of RFPs that CGP 3.0 will be focussing on. We are putting this discussion in the compound community to get more feedback and possible points to be added to the RFP list. The goal is to discuss with the community and make the RFP list as detailed as possible, so that CGP3 is able to attract the best projects to the Compound Platform. Once the RFP list is decided, AlphaGrowth will follow up with a draft Proposal for Compound Grants Program 3.0 and get the community feedback on moving forward.
[Draft] Request for Proposal for Compound Grants Program 3.0
Vertical Growth
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Facilitate user growth to current compound products
- [Business Development] Embedded DeFi: help apps that integrate existing markets and embed into apps with large communities. i.e. GMX
- [Business Development] Partner with lending platforms and lending aggregators to create the most efficient markets.
- [Business Development] Grow the quantity of Compound money markets with high quality projects.
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Grow User awareness: Marketing, Outbound and Events
- [Content] Education for Compound’s existing products
- [Marketing] Incentives for influencer to deep dive on Compound’s current products
- [Events] Twitter spaces and AMAs with existing projects & partners
- [Content] Community education about latest launches and features
- [Content] Textual, Visual, Audio content creation for technical, professional, prosumer and retail users
- [Content] Key opinion leader initiatives to introduce whales onto Compound and get them locked
- [Events] Hackathon sponsorship for Developers to see Compound as a liquidity platform.
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Alternative UI/UX for traders using compound
- [Research & Build] Compound usability tools
- [Research & Build] Compound extensions
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Delegate engagement program / Governance Enhancement initiatives
- [Research & Build] Tools, processes and activities that rejuvenate participation and voting in the community; i.e participation NFT, etc
Horizontal Growth
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Ease the onboarding of Web2 users/capital into Compound
- [Research] the tooling to ease onboarding for Web2 lenders into compound
- [Build] APIs Integrating and facilitating hedge fund/institutional capital flow into Compound
- [Build]SDK kits - create software kits to help developers create applications on top of Compound and integrate Compound
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Multi-chain Expansion
- [Research] Bridge integrations for Cross chain communication & integrations
- [Research] Create a plan for multi-chain expansion to EVM based chain understanding risk return profiles
- [Business Development] strategic Initiatives that support onboarding of whales from other chain DeFi projects
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Regulatory outreach: The major factor inhibiting DeFi is the possibility of Regulation. The grants program will aim to promote research and activities that make it easier for Compound to grow with possible regulations in DeFi
AlphaGrowth
This is a draft list, the list will be finalized once we have inputs from the compound community.
Departing from the domain based strategy of CGP2, we are returning to the tried and true strategy of RFP based growth (As well as taking on some of the tasks ourselves):
- Facilitate user growth to current compound products
- [Business Development] Embedded DeFi help apps that integrate existing markets and embed into apps with large communities. i.e. GMX
- [Business Development] Partner with lending platforms and lending aggregators to create the most efficient markets.
- [Business Development] Grow the quantity of Compound money markets with high quality projects.
- Multi-chain Expansion
- [Business Development] strategic Initiatives that support onboarding of whales from other chain DeFi projects
Differentiation
Our main value proposition over other grant administrators is that we are not only processing inbound grants, we will also hunt through outbound campaigns to find the best resources to deliver on our promise of helping Compound grow. But first we need a shopping list.
The idea of RFPs is akin to a shopping list. Heading out for shopping, many of us have the shopping list with us. Shopping lists may sound basic, but they help us stay organized. With the list our needs are prioritized, and it saves time and money by preventing us from spending money on unnecessary shiny things. The RFP list ensures that the CGP3 Marketing and outbound are highly targeted and the Compound Grants program supports the projects which are poised to make the greatest impact.
About Us
Founded in 2018, AlphaGrowth has helped strategize, fund, and market hundreds of blockchain projects. Our mission is to help the next top 1,000 crypto projects get funding and go to market. Our team is led by data experts, economists and computer scientists with deep blockchain experience.
Previously, the founding team built a computer matching algorithm to match 80,000 fintech companies with 7,000 investors and private equity firms. AlphaGrowth is now applying these same principles to match crypto projects to corresponding ecosystem criteria and desires.
During our management of the Kava Grants program, the KAVA ecosystem witnessed a surge of 78+ projects integrating with the ecosystem along with a TVL of $80 Million in the ecosystem brought by the grantees. As mentioned before, having a “shopping list” is a key factor to pair with a growth mindset. We aim to make CGP3 a major success for Compound in terms of TVL increase, integrations boost and activity within the ecosystem. We are excited to get more of the Compound Community feedback as we move forward.
Moving forward
Once our discussions and discovery phase about the grants program requirements are over and we have received feedback from the community, we proceed with putting a proposal for the Compound Grants Program 3.0 and present it to the community.