DeFi boots are built on a compound weight. What to do with the $ 200 Token
The token for the decentralized financial application (DeFi) Compound, COMP, reached an all-time high of $ 230 on Friday. Now startups built on the lending protocol are considering what to do about this unexpected wind.
The compound was built from scratch as a simple marketplace to place collateral and borrow money. The goal is to make it easier for other companies to build products on it, and some do.
But some start-up companies are in a situation where they have control over COMP earned from the funds entrusted by their customers. Then the question becomes: Do they return the COMP to the user immediately or use it to lock out other benefits? And if they redistribute right now, do they simply give COMP users or convert it first into a more familiar form of cryptocurrency?
CoinDesk has registered with companies built on top of Ethereum-based applications this week to learn about the plan to use the new COMP token that their platform users earn.
Although the startups we talked to are still exploring which course of action is best, they generally agree that COMP COMP's rapid growth is a positive time for the industry. DeFi industry.
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Dharma CEO Nadav Hollander explained the significance of opening Compound management for a company like his. In an email to CoinDesk, he wrote, it was a bank and was voted at the Federal Reserve meetings - only any protocol user could do it.
In fact, France has actively participated. There is currently a proposal to increase the amount of interest earned from tether deposits (USDT) on the Compound. Such deposits go into the reserve group, a kind of security blanket that each liquidity group creates for itself. As the administrative token, COMP is used to place a bet on a person or entity vote, whether against.
According to DeFi Pulse, the total value of locked Lemon Compound (TVL) is currently at $ 418 million, $ 80 million less than MakerDAO, the dominant protocol in DeFi. Compound has increased by more than $ 300 million in liquidity since the COMP distribution began on June 15.
The COMP token is trading at $ 218 when writing this article, according to CoinGecko, with a market capitalization - separate from TV TV's Compound protocol - about $ 570 million. The market cap for the Administration Maker token, MKR, is currently at $ 466 million.
Meanwhile, Dharma is still sorting on how to handle COMP that its users are earning.
Dharma is a smart wallet application that allows users to deposit money to earn interest easily. It also allows them to easily pay each other by the tough, just like Venmo. Although dai is not the most popular asset on recent Compound (USDC and USDT have), each depositors and borrowers on Dharma still earn some COMP every day when distributed.
Read more: Crypto Lender Dharma Pivots into Stablecoin savings account
Slim Dharma COO talked about the options Dharma is considering on Twitter. Currently, they are considering holding COMP so Dharma can be a stronger voter in administration, but they can also directly distribute COMP to users or convert it into dai and then distribute it. .
Forster tweeted, `` We have discussed this issue internally and in our Discord channel. Haven has reached a conclusion yet.
PoolTogether is a lossless lottery. Users deposit their money with PoolTogether to gain the opportunity to earn all the profits that others do as well.
PoolTogether has a weekly weekly group and a daily USDC group, but their profits have been hindered by the way that the liquidity mining has changed the market.
Pool Pool Pool contracts are earning COMP and currently, the value of that COMP is actually greater than the value of the accrued interest for the prizes !, the founder, Le Leonon Muffack, told CoinDesk in an email . However, when we designed the protocol, we had no intention of COMP, so there is currently no mechanism for redistributing it to the depositors or putting it into prizes.
Read more: Coinbase pumps $ 1.1 million USDC into DeFi Uniswap and PoolTogether websites
Cusack let his community know that this was a question being considered in the week before COMP began being distributed.
Like Dharma, it is considering holding COMP to be able to vote for tokens for the benefit of PoolTogether users. That said, Cusack also wrote, Although the scenario is likely that we will include the cumulative part in prize distribution. So in the long run, this will be great for users as the value of COMP will increase the size of the prize.
Place a bet
Stained is a hardware care startup if users have tokens that they can make a profit for. It even has a product that will move assets around to optimize their earnings, called RAY, for Robo Advisor for Yield.
Stakes CEO Tim Ogilvie told CoinDesk, any earned COMPs are distributed to depositors. Next week, we will update our algorithm so that the output attributed to the Compound includes interest and the value of COMP earned.
Linen and Argent
Linen and Argent are both wallet applications that make it easy to transfer assets into Compound and make a profit. Because all deposits in the Compound are tokenized, this is simple to do in a non-custodial way; if your wallet can hold USDC, it will be able to hold cUSDC (encrypted version of USDC's deposit on the Compound).
Argent posted on its blog on Wednesday that its users will be able to track COMP's earnings right in their wallet and use it like any other token.
Read more: Paradigm leads $ 12 million to launch DeFi-friendly wallet
Founder and CEO of linen Vitaly Bahachuk told CoinDesk via email that they would do so. He wrote, the linen app is provided by the user's self-hosted wallet and the linen does not have access to the members' properties, including access to COMP. We will build an interface in the application where our members can request their COMP and use COMP the way they choose.
One option they can make, HODL the COMP and entrust to Linen to vote for their benefit. Linen has declared itself a voting delegate for Compound protocol questions.
Opyn has also proclaimed himself a Compound delegate.
The company has built a decentralized protocol to hedge risks on ERC-20 tokens. Although using Opyn by itself does not create a way that users will earn COMP, its application may be more valuable in a highly volatile market like the one created by COMP.
Read more: Optional protocol brings ‘Insurance for DeFi deposits on compound
When Opyn creates a fence, it also tokenizes it. So if users buy a fence against ETH, they will receive oETH. With so many users converting USDT into Compound, cUSDT deposit tokens, the growing interest in tethering has become prominent for the marginal Opyn community.
At the same time, we see user demand for ocUSDT (protect USDT deposits in the Compound) because so many DeFi users have been drawn to COMP's incentives for USDT, co-founder of Op Opyn , Alexis Gauba told CoinDesk.
With COMP's price skyrocketing, there was a discussion on Twitter about creating a fence for governance tokens.
Gauba wrote, the Opyn Team is currently planning for the OCOMP token, however, the protocol is completely open and supports options on any arbitrary ERC-20 token, so anyone oCOMP token can also be created!