Temperature Check on Proposals for the Addition of YFI, SUSHI, MKR, SNX, and CRV

Summary

Compound’s list of supported assets has not seen a material shift since the launch of on-chain governance in 2020, aside from the inclusion of Uniswap’s native token UNI and USDT. Growth in the DeFi space has led to demand for the collateralization of ecosystem assets currently not enabled on Compound. ParaFi Capital wishes to propose the addition of such DeFi coins to Compound’s money market, though is seeking insight as to which asset should be targeted for addition first.

Motivation

Aside from UNI, whose addition to the protocol took place at the start of October, Compound does not support DeFi-native assets. This comes in spite of the fact that there is a demand to collateralize these assets, as indicated by the $368 million worth of UNI supplied on Compound and the deposits of coins such as MKR and xSUSHI in other money market protocols.

Many members within the communities of DeFi protocols have discussed their desire to make their holdings productive in private and public channels. The assets that are often top of mind for these communities are YFI, SUSHI, MKR, SNX, and CRV. These coins are actively traded on Coinbase Pro and have deep liquidity across the decentralized exchange ecosystem.

By adding one or all of these DeFi coins, Compound will likely see increased TVL growth and growth in demand to borrow existing assets supported by the protocol.

Action Item

While Compound would likely benefit from the addition of a number of DeFi assets, to minimize stress on governance, we propose starting with one. To gauge the asset the Compound community wants to be prioritized, there is a poll attached to this post with the options outlined earlier in this post.

After the poll is closed in one week (May 20th), ParaFi will seek to move forward with formalized proposals exploring the addition of the three assets in order of the number of votes they receive.

Interested Party

ParaFi Capital is a digital asset fund with a focus on decentralized finance (“DeFi”).

ParaFi Capital website: https://www.parafi.capital/

ParaFi Capital Twitter: https://twitter.com/paraficapital

  • SNX
  • MKR
  • YFI
  • SUSHI
  • CRV

0 voters

4 Likes

I support your proposal, Compound protocol simply needs to offer more tokens.

I hope this will not be a requirement after Chainlink integration

2 Likes

That is definitely part of the goal. Once we’re using Chainlink, we won’t be reliant on Coinbase to support more coins. After the oracle update is implemented, I am planning to work on cMKR and eventually more.

4 Likes

I fully support adding more tokens. I am especially keen on adding the highest quality projects and would like to propose that AMP be added for consideration.

Very supportive too.
For SUSHI it would make more sense to allow deposit of xSUSHI (i.e. staked SUSHI) to be used as collateral. This is currently possible on Aave and represent $230m of liquidity.

2 Likes

Hey all,

We will be extending the period for this poll beyond the initial 7 days (which was supposed to end today) to make sure there is ample community engagement. We have plans to tweet this post out in the near future to get further feedback.

To update everyone: We will be working with Getty on the addition of the assets listed in the poll over the coming months. MKR first, then the rest next. Thank you everyone for the feedback.

3 Likes

We are actually on it, (for stETH) would love your help and collaboration here