WOOF! supports leveraging the Staker as the foundation for COMP staking, and proposes its expertise to support the deployment.
Why use Staker?
- Proven Implementation: Staker solution has already been built and tested, minimizing the need for development from scratch.
- Faster Deployment: Saves time by integrating an existing staking contract rather than developing a new one.
Improvement of Staker
Staker logic is robust and well built, while missing some components to get integrated to Compound. WOOF! proposes to improve Staker to make it more compatible with Compound DAO needs.
1. Reserves Withdrawal
Reserves withdrawal is a crucial component of staking infrastructure.
Compound community can lean on two approaches while withdrawing reserves:
| Automatic | Semi-automatic | |
|---|---|---|
| Description | Automatically split fees between reserves and Staker. | Launch on-chain proposal each time when portion of fees shall be withdrawn from Reserves to Staker. |
| Scope | Need to upgrade existing comet infrastructure. | Creation of migration script template. |
| Dev Efforts | High | Low |
| Audit Efforts | High | Low |
| Risks | High | Low |
| Withdrawal Frequency | Daily | On-demand |
WOOF! suggests implementing a semi-automatic approach to decrease costs and risks.
Semi-automatic approach
Compound ecosystem consists of ~40 markets on multiple chains which adds burden while moving fees to Staker.
WOOF! suggests developing a transaction builder that automates the withdrawal process:
- User interface to withdraw reserves from multiple markets and transfer it to Staker on Ethereum.
- Bundling all transactions under a single DAO proposal.
- Reduce the need for manual on-chain proposal reviews by auditors.
- Allow delegators to specify the amount of reserves to withdraw per market and submit proposals independently.
Alternatively, an automated cron job could be implemented to submit proposals every N days, withdrawing X% of reserves.
WOOF! suggests having an on-chain proposal for every reserve withdrawal. WOOF! is against updating protocol to change the reserve withdrawal logic.
2. Rewards Distribution
A critical decision for COMP staking is selecting the reward token for distribution. The reserves currently consist of various blue-chip assets, including USDC, USDT, DAI, and WETH.
Potential Approaches
| Approach | Description | stCOMP LST |
|---|---|---|
| Multi-asset distribution | Swap fees into blue-chip assets (USDC, USDT, DAI, WETH) then distribute as rewards. | No |
| Single-asset Conversion | Swap fees into a single asset like ETH then distribute as rewards. | No |
| DAO Buyback Mechanism | DAO purchases fees using COMP from Comptroller. Acquired COMP will be distributed as staking rewards. | Yes |
| Reserve Purchase Smart Contract | Users bid to purchase fees with COMP. COMP will be distributed as rewards. | Yes |
WOOF! recommends the Single-asset Conversion approach for its straightforwardness and lack of artificial COMP buying pressure.
3. Staker Interface
Robust smart contracts stack shall be supported by the user-friendly interface with advanced statistics and real-time insights. WOOF! proposes developing a Staker Interface which will serve as a central hub for both token holders and delegates, ensuring clear visibility into the staking process and reward distribution.
Staker Interface will be an addition to the newest Compound Front-end built by WOOF!
Key Features
The Staked COMP UI will include the following components:
Staked COMP Statistics
- Total COMP staked.
- Historical staking trends.
Rewards Overview
- Current Staked COMP APR – real-time reward rates for stakers.
- Current Rewards Balance – accumulated rewards available for claim.
Delegation Insights
- Top Stakers (“Whales”) – major contributors in the staking system.
- Delegators & Delegation Flow – list of delegators and recipients of delegation.
4. Reserves Dashboard
For transparent staking rewards, the community must track all reserves. If staked COMP becomes a long-term model, monitoring fees and reserve growth will be essential.
Proposed solution
WOOF! suggests a user-friendly UI to display reserve data for V2 and V3 markets, featuring:
- Reserve growth trends over time
- Historical withdrawals
This dashboard will improve community oversight and decision-making.
Integration with Staker Interface
To provide a unified experience, WOOF! suggests integrating the Reserves Dashboard to the Staker Interface.
By consolidating key insights, this UI will empower both the community and governance participants, ensuring transparency and efficiency in Staked COMP operations.
Conclusion
By integrating Staker with tailored modifications, WOOF! aims to deliver a secure, efficient, and community-driven staking solution for Staked COMP.
Next step
- Feedback from Gauntlet, ScopeLift, AlphaGrowth and community