- In Compound’s recent tweet, it has announced that the proposal #011 executed successfully.
- Further said that the protocol has been allocating the COMP token on the basis of borrowing volume and not not interes rates across the market.
- A total of 771804 votes obtained from 111 different addresses who were favour of the proposal.
In Compound’s recent tweet, it has announced that the proposal #011 executed successfully. In the tweet Further said that the protocol has been allocating the COMP token on the basis of borrowing volume and not not interes rates across the market.
Proposal 011 was executed; the protocol is now allocating $COMP across markets based on borrowing volume (and not interest rates).
To monitor the allocation, visit:https://t.co/vCejHiO6ZO
— Compound Labs (@compoundfinance) July 2, 2020
Previously on June 28 , Compound had tweeted that on of its member had proposed to patch a Compound Distribution mechanism in order to remove the consideration of interest rates as a weighing mechanism and to diminish the risk if griefing. Link to the tweet:
A member of the community has proposed a patch to the COMP Distribution mechanism, to remove interest rates as a weighting mechanism, and reduce the risk of griefing.
— Compound Labs (@compoundfinance) June 28, 2020
771804 Votes In Favour Of The Proposal
Proposal #11 initiated by Geoffrey Hayes on June 28th, 2020 and it became active on the same day. Followed by which on July 1st it successfully queued and was finally executed on 3rd July. A total of 771804 votes obtained from 111 different addresses who were favour of the proposal. The top three addresses in terms of the vote obtained were Paradigm, Kain | Synthetix and Blck. However, there was 1 vote from 4 addresses who were against the proposal which didn’t really matter because the proposal had already gained majority.
Major Issues Of The Compound Platform That Will Be Fixed
The Compound token COMP launched recently in the market and it has been a amazing week for it in terms of performance. As a result of which Compound was able to cross a total of $1 billion mark in terms of total supply and $383 million in total volumes. Despite the fact that Compound is the most successful and popular DeFi protocol it still has some issues. The two major issues are:
- The flash loans used to grief the COMP distribution for an interim period.
- The DeFi users are basically yield farming in the money market on the basis of interest rates. As a result of which, Compound has used over 80% of the BAT’s entire liquid supply. This is a bad news because only a limited amount of BAT is available to reconstruct the system if the worst case scenario happens.
Proposal Will Implement A New Comptroller Contract
This new contract will use a new Comptroller contract which will patch the refreshCompSpeeds function. It will now, not allocate COMP on the basis of borrowing interest rates. In order to reduce the risk of griefing, the function will now need an external account instead of a smart contract. This new patch reviewed by the community members and has been successfully tested on Ethereum’s Kovan and Ropsten testnets.