Build an open-source batching contract that would pool user funds, and once a day, execute contract code to supply assets to Compound. Users would benefit from this because of lower gas fees (the fee would be spread across many users).
To participate in Compound governance, users need to allocate COMP tokens to the governance system. The allocated COMP tokens, unfortunately, aren't utilized for anything other than voting. Users should not have to choose between using COMP as an asset or as a vote. Users should be able to vote with their collateralized COMP (e.g., if they have COMP locked as collateral in MakerDAO, they should be able to vote with it on governance proposals). The grants program is aware of many COMP holders who choose to borrow against their COMP rather than participate in governance. Check out this forum thread for more information: https://www.comp.xyz/t/comp-staking-collateralization/1419
Today, Compound is available on only one chain - Ethereum. We would love to see someone bring Compound to L2's (e.g., Optimism, Polygon), in addition to other L1's.
Compound supports eleven markets today: USDC, USDT, COMP, UNI, ZRX, WBTC, ETH, DAI, BAT, LINK and TUSD. We would like to fund proposals that add new markets to Compound.
The current liquidation system uses an 8% liquidation incentive and a max liquidation size of 50%. Accounts that drop below their liquidation point are immediately available for liquidation. To hear more about improvements that could be made to the liquidation system, check out this forum thread: https://www.comp.xyz/t/improving-liquidation/1180
The launch of Uniswap V3 brings a shift from LP tokens as ERC20s to ERC721s (NFTs). Because each liquidity position on Uni V3 is unique it represents a challenge to building a standardized system for collateral. The immediate solution for using V3 liquidity is to use a managed service like Charm or Gelato's which users can deposit ETH & USDC and Charm/Gelato manages the liquidity. Users who deposit receive an ERC20 token representing their assets lent. Charm and Gelato are the first of many solutions to come. The grants program would like to support researchers and builders who successfully list Charm/Gelato liquidity provider tokens or similar platforms.
Balancer launched V2 in late April. V2 is using ERC20s as LP tokens and is similar to the V1 but with many gas improvements. Most notably, V2 has all of the protocol's assets pooled in one contract instead of each pool having its own. Adding support for Balancer V2 tokens would be a great way to learn more about Balancer and Compound. To learn more, check out their Medium article: https://medium.com/balancer-protocol/developers-balancer-v2-smart-contracts-are-now-live-e97002ee0310
Although the current Compound Interface is generally really nice, it isn't possible for the community to contribute to it and improve. The protocol is accessible through multiple external interfaces like InstaDapp, but it would be great to have a community-built and maintained interface for the protocol.
The Compound Grants program also offers grants for general industry improvements. A topic not discussed enough in crypto is securing a user's holdings in the event of death. We would like to see a smart contract that can execute any code, similar to a Gnosis Multisig, but has one primary owner and one backup owner. If the contract goes unused by the primary owner for x number of days, the backup owner can take control of the contract. The idea is people can give a loved one the ability to recover their assets without giving them the ability to take them while they are alive. The grants program is looking to do a two-part grant. Part one, build a working version of this that works with wallet connect. Part two, we'll fund it to be audited.
To participate in Compound governance, users need to allocate COMP tokens to the governance system. The allocated COMP tokens, unfortunately, aren't utilized for anything other than voting. Currently, the only incentives in the protocol are for people lending or borrowing assets. Voters play a critical role in maintaining and developing the protocol but do not receive any reward for doing so. After seeing the success of Balancer's Gov Factor, the grants program is interested in seeing proposals for a similar system. There are two components we are interested in. Primarily, we would like to see rewards for voters who vote yes, abstain, or no. These rewards should be pro-rata the number of their votes with a maximum. Second, we would like a system that rewards voters who also have accounts with Compound and vote. These rewards should be distributed pro-rata their voting power and size of position with no cap. While the grants program will cover the development, the funding for the rewards should come through the regular governance process.
- Simplify the primary contract; reduce gas costs
- Upgrade to latest solidity version
- Remove safemath/carefulmath
- Replace “graceful errors” with revert messages
Currently, each cToken calls out to an interest rate model. This pattern was ideal when cTokens and rate models were both immutable, but now that they are each upgradable, the rate models can be flattened into the cToken to simplify logic & reduce gas costs.
Identify an additional 5,000 / tx gas savings anywhere in the cToken or Comptroller related to core cToken functions (mint, redeem, transfer, borrow, repay), while preserving all functionality and correctness.
Currently, COMP is split 50/50 between borrowers and suppliers in a market. We'd like someone to allow Compound governance to use a more dynamic ratio (e.g. DAI is 25% to suppliers, 75% to borrowers, and ETH is 100% to suppliers)
BAT, ZRX, USDC, and ETH need to be migrated to the latest cToken Implementation.
Different from RFP 7, this RFP is for Compound supporting Uniswap v3 NFTs as collateral. This RFP would require developing cToken that holds erc-721 tokens instead of the regular erc-20 tokens, developing an oracle for the NFTs, and incorporating the asset into the liquidation system. We recommend starting with a standard DAI-USDC market with a defined range and fee. While the market will likely not have a collateral factor initially it is expected to be used as collateral. That being said the asset does not need to be necessarily borrowable.
Every cToken has an internet rate curve that dictates the supply and borrowing rate. The grants program would like for someone to analyze the current interest rate curve and publish a report. The report should include an analysis of the current parameters, recommendations for the interest rate curve (where needed), and a bonus of $5k per interest rate successfully update through governance.
With Compound v3/Gateway nearing completion, it is time to start thinking about building Starports for other chains. Starports are a critical piece of infrastructure that enables the Compound protocol to reach a larger audience. With the success of Optimism and the fact it is EVM compatible, the grants program thinks Polygon is a great place for a Starport. To learn more about Compound Gateway, check this out: https://compound.cash/