[WOOF!] Sandbox Development Report
Dec 11, 2024 - Jan 17, 2025
Hello, Compound residents! In line with the Compound Sandbox initiative, WOOF! has launched the discovery phase to organize and prepare the development process.
During this phase, we explored the overall application logic and its components. The output and functionality requirements are being documented in a comprehensive document that will be presented to Compound residents in a report by the next two weeks (Jan 31).
The dedicated team created wireframes for the Sandbox Market Factory, showcasing the creation market stage and related functionalities for creators and other users such as fee and market ownership transfering. Transferring market ownership to the Compound has been defined as well.
Regarding development, we began studying the core part of the application, specifically the PID Controller — an on-chain mechanism that dynamically determines collateral parameters. These parameters can vary significantly for each market based on asset-specific characteristics. Our goal is to understand the main parameters for the calculation and the methodology behind setting collateral-related parameters for each Comet market.
In addition to collateral parameters, we are interested in understanding how market-specific parameters are determined. These include factors influencing the interest rate curve and additional parameters affecting market behavior.
To align the Sandbox PID Controller with Compound’s risk management standards, we have requested Gauntlet to provide inputs on the following document.
In the first decade of January, we received thorough and insightful responses to our inquiries. However, some aspects need clarification or further detail. To deliver a solid outcome, we are going to invite Chain Risk to join us in refining calculations based on the material provided by Gauntlet and the set of clarifying questions listed by WOOF! team.
Our focus and next steps:
- Determine collateral and market-specific parameters.
- Finalize the Software Requirements Specification (SRS).
- Develop architecture for smart contracts.
- Define the scope and tasks for each development direction:
- Frontend.
- Backend.
- Smart contract.