Woof proposes to integrate an OKX swap widget directly into the Compound Interface.
Context
With the new features we’ve been developing (Multiplier, Collateral Swap, and Repay Loan with Collateral), position management on Compound is evolving significantly. These features create a natural need for embedded swaps within the interface to keep users within the ecosystem.
Currently, when users need to swap assets, they must navigate to external platforms, creating friction and pulling them away from Compound. By integrating swaps directly into the interface, we can streamline the user experience and keep all critical actions in one place.
The Proposal
We propose starting with the OKX widget as-is to gauge user traction. This approach is low-effort from an implementation standpoint and will help us validate demand. If we see strong adoption, we can evolve it into a more custom solution tailored to Compound’s needs.
Monetization
Implement an interface swap fee from day one that flows directly to a DAO-controlled address, beginning immediate revenue generation.
The suggested interface swap fee is 25 bps.
Revenue Model
Here’s what annual DAO revenue could look like at 100% fee capture, across different monthly volumes and fee rates:
| Monthly Volume | Monthly Fees | Annual Fees |
|---|---|---|
| $10M | $25,000 | $300,000 |
| $25M | $62,500 | $750,000 |
| $50M | $125,000 | $1,500,000 |
| $100M | $250,000 | $3,000,000 |
Rationale
One of DAO’s core objectives is making Compound more profitable. Swaps represent an revenue opportunity. The DAO can capture fees on swaps, directly increasing protocol revenue while providing value to users.
Next Steps
- Community Feedback: We welcome community feedback and suggestions.
- Technical Review: Compound Foundation technical feedback and Woof team adjustments.
- Production Decision: Compound Foundation decision on moving forward to production.
Tracking
Woof will track traction metrics following the launch and report back to the community on volume and fees coming through Widget integration. This data will help validate the success of the integration.