Compound
2023
October 20: The Compound Digest
- $stMATIC added as collateral on Polygon’s $USDC market.
- New Markets overview page, displaying all Compound III markets on one page.
- Phase 2 to deprecate Compound v2 enacted.
September 19: Phase 1 to deprecate Compound v2 enacted
- A proposal from Gauntlet to adjust 8 risk parameters, distribution rewards, and IR curve parameters across the v2 and Ethereum v3 USDC protocols for Phase 1 of the Compound v2 Deprecation.
September 8: Native $USDC market goes live on Arbitrum.
- Users can transfer native $USDC from the Arbitrum market to different chains via Circle’s cross-chain transfer protocol (CCTP), without needing to bridge back to Ethereum.
- The bridged $USDC.e Arbitrum market will continue to operate, while Arbitrum develops its native migration solution.
September 8: Compound launches on Base.
- $ETH and $cbETH can be used as collateral to borrow bridged $USDC, or $cbETH to borrow $ETH in each respective market.
July 7: Encumber introduced.
- Encumber is a new mechanism that improves on the concept of token allowances. Encumber allows users to retain custody of their tokens, while granting another address the exclusive right to transfer those tokens.
- For lending protocols, this approach removes the need for pooled collateral entirely.
July 1: Compound’s new website introduced.
May 23: Compound launches on Arbitrum.
- This marks the third chain Compound is deployed on.
- At launch, $ARB, $GMX, $WETH, and $WBTC can be used as collateral to borrow $USDC.
March 16: Permanent shutdown of v2 REST API announced.
- The Compound v2 REST API (api.compound.finance) for reading structured data will be permanently shut down on April 15th, 2023.
March 11: Compound pauses its v2 vaults due to USDC depeg.
- Users could still borrow, repay, and withdraw USDC normally.
- Compound v3 features an upgraded risk engine, and is functioning without any issues.
7 March: Compound V3 is deployed on Polygon. Users can use WBTC, WETH, and MATIC as collateral to borrow USDC.
1 February: Compound 3 ETH Market is Live.
- Offers the most streamlined & efficient ETH borrowing experience in DeFi for stETH and cbETH collateral.
- Users can borrow up to 90% collateral value of stETH and cbETH.
2022
8 December: Compound Extensions are introduced.
- Extensions are optional add-ons, built by community developers, that enhance the Compound experience.
- Can leverage Compound III’s new account management functionality to add new features to your account–such as automation, composability with other DeFi protocols, or position management.
- Can run without requiring any permissions, and simply provide information–such as liquidation alerts.
14 September: Borrowing for Institutions is enabled.
- Accredited Institutions can now borrow from Compound Treasury, using digital assets as collateral.
- USD or USDC with fixed rates starting at 6% APR, using Bitcoin, Ether, and supported ERC-20 assets as collateral.
- Borrowing is offered with an open-ended term and no repayment schedule, providing clients the flexibility to draw liquidity and repay balances as they see fit–for as long as they remain overcollateralized.
30 August: Compound 3 goes live.
- The first Compound III market allows you to borrow USDC using ETH, WBTC, LINK, UNI, and COMP as collateral.
26 August: Compound 3 proposal is initialized with 100% votes on For.
19 August: Compound 3 proposal put up for voting.
August: Proposal for Compound 3 published and put up for discussion.
- A next-generation collateralized borrowing protocol, designed for security, capital efficiency, low gas costs, and streamlined governance.
- Each deployment of Compound III features a single borrowable asset.
- Borrowers supply collateral, which is isolated and remains their property–it is never rehypothecated or withdrawable by other users (except during liquidation).
- By removing every unnecessary feature and use-case, upgrading the risk engine (and capital efficiency), and focusing on a single borrowable asset, the protocol has the potential to be the safest & most appealing tool for borrowers ever designed.
9 May: Compound Treasury receives a B- credit rating from S&P Global Ratings.
- First institutional decentralized finance (DeFi) offering to be rated by a major credit rating agency
- S&P’s outlook is stable, reflecting an expectation of limited loan losses on the Compound Treasury platform.
- Compound Treasury’s ratings could be upgraded in upside scenarios such as greater regulatory clarity for the digital asset industry, or a longer track record of stable performance.
29 June: Compound Treasury is announced.
- Designed for non-crypto native businesses and financial institutions to access the benefits of the Compound protocol.
- Enables large holders of U.S. Dollars to access the interest rates available in the USDC market of the Compound protocol, while abstracting away protocol-related complexity including private key management, crypto-to-fiat conversion, and interest rate volatility.
2 March: Gateway, a prototype based on the Compound Chain Whitepaper, is announced.
- Gateway is a Substrate blockchain, governed by COMP token-holders on Ethereum.
- Fully upgradeable; governance is able to directly upgrade the blockchain by voting on code upgrades, without forks or downtime.
2021
18 December: Whitepaper for Compound Chain is released.
- Compound Chain is a tool that could bring more assets into the protocol from a variety of ledgers.
- It’s designed to complement the Ethereum contracts, be controlled by $COMP governance, and extend DeFi network effects.
28 May: Compound governance is expanded.
- Governance is ready to scale from core team and shareholders, to the entire Compound ecosystem.
- Governance allocates 2,312 COMP per day to markets in a fixed allocation.
16 April: Compound governance goes live.
- 2,396,307 COMP distributed to shareholders of Compound Labs, Inc., which created the protocol
- 2,226,037 COMP allocated to our founders & team, and subject to 4-year vesting
- 372,707 COMP allocated to future team members (we’re hiring!)
- 4,229,949 COMP reserved for users of the protocol
- 775,000 COMP reserved for the community to advance governance through other means — which will be announced at a future date
- 0 COMP will be sold or retained by Compound Labs, Inc.
27 February: Compound governance token (COMP) introduced.
- Replaces the Compound protocol’s administrator with community governance.
- During an initial sandbox period, a portion of the governance tokens will be distributed amongst the company’s shareholders, who can delegate voting weight to themselves or the public as they see fit; the majority of COMP will be escrowed, and will not participate in governance.
- When the governance system is operating in a reliable, distributed manner, the failsafe can be removed — and that the remaining tokens be distributed to Compound protocol users.
2020
28 November: Multi-Collateral DAI added to the Compound protocol.
19 August: Support for Multi-Collateral DAI plans published.
- MakerDAO planned to release a new version of their DAI stablecoin while deprecating the legacy token (rebranded to SAI) in a global settlement later.
- SAI will function normally, users are not forced to redeem nor maintain SAI in Compound.
- After MakerDAO calls for a global settlement, SAI will no longer be a stable asset.
19 August: Upgrade to governance ability, Protocol v2.2 .
- Timelock introduced to replace the current permissions.
- Documentation fixes for the Comptroller.
- “Enter on borrow” functionality.
19 August: Open Price Feed (OPF) is announced.
- Splits the trust and logic required for an Ethereum price feed into four parts:
- Off-chain Price Data.
- Posting Price Data to Ethereum.
- On-chain Storage.
- Price Views.
23 May: Compound v2 goes live on Ethereum mainnet
- Supports Ether, 0x, Augur, Basic Attention Token, Dai, and USDC.
16 April: Compound v2 testnet launches.
- Available on Ethereum testnets Rinkeby, Kovan, and Ropsten.
19 March: Compound v2 plans released, changes include:
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- Each asset will have its own collateral factor, so that Compound can support every asset, not just large and liquid ones.
- Asset gateways.
- Each asset will have its own smart contract gateway, customized to the underlying asset.
- This will allow Compound to support Ether without “wrapping” it first, ERC-721 token pools, and token standards that haven’t been designed yet.
- Planned Governance improvements.
- The mechanics for each asset can be upgraded over time.
2019
1 December: DAI stablecoin is added to the protocol.
- You can earn interest on DAI, with full liquidity and the ability to withdraw your DAI at any time.
- Use DAI as collateral to borrow ETH, ZRX, BAT, and REP.
- Borrow Dai using ETH, ZRX, BAT, and REP as collateral.
27 September: Compound launches its money market protocol on the Ethereum blockchain.
- Prior significant testing done and external audits led by Trail of Bits and Certora.
- Initially supports the following markets
- Ether (Wrapped via WETH-9), 0x Protocol (ZRX), Basic Attention Token (BAT), Augur (REP).
11 August: Compound announces Fund Partners.
- 26 Funds partners worked closely with the Compound team up to and through their launch, testing their protocol and providing feedback as well as committing initial liquidity.
17 May: Compound announces its Seed funding.
- $8.2 million was raised and led by
31 January: Robert Leshner, founder of Compound, publishes the first blog article.
- Introduces Compound as a money market with algorithmically set interest rates along with fellow team member.
2018
