[COMPOUND] Compound Grants Program (CGP) Renewal
Compound Grants Program (CGP) Renewal
Summary
After successfully running Compound grants for the past 12 months, the Compound Grants team proposes to renew the proposal with a budget of $1.375M for another period of 12 months. The first two iterations ran from January to May 2023 and November 2023 to May 2024
During the previous grant programs, our focus has been sourcing and funding high-quality proposals aligned with the domain-specific RFPs ratified by the Compound community. Moreover, we have received great feedback from the community, builders, and domain allocators regarding renewing CGP and are grateful for their valuable input.
Program Overview
During the Compound grants periods, we have also made sure to update the community every month and over the community calls about the progress of Compound Grants. We also led Demo Days to showcase the grantee projects with the community.
In our efforts to fund only the most impactful projects that align with Compound’s RFPs, we have strongly emphasized the quality of the proposals received. As a result of this increased selectivity and focus on excellence, our proposal acceptance rate has decreased by half compared to previous iterations of the grants program.
Overall, we received 92 proposals over two quarters and accepted 23, with an acceptance rate of 25%. The CGP team allocated ~$489,000 and disbursed $249,000 to projects from both iterations. A summary of the previous iteration and the details of funded proposals can be found below.
A detailed overview of each accepted proposal across both iterations can be viewed here.
P.S: We are not optimizing for the quantity of the proposals or the higher acceptance rate, but optimizing for the quality of the proposals in the grants program. On the same lines we’re also launching the Questbook builder profile feature on Questbook, where you could verify developer credentials.
Wins and Impact of Funded Proposals
Integration with Comet enables Compound markets to be a liquidity source for traders using leverage on Contango. Since the integration was shipped, there has been over $3m in volume, and there is currently an open interest of over $500k, with Arbitrum being the most used chain.
Overall data on Contango can be found here.
Understanding & Improving the Governance Participation at Compound
DeepDAO delivered a thirteen-page report analyzing governance participation within the Compound DAO. TLDR: Much work remains to improve voter participation within the Compound community, and DeepDAO offers some recommendations on targeting missing voters, voters from previous years, incentivization programs, education grants, and more.
Full Report here
Economic Risk Simulation Engine for Compound v3
The Chainrisk team has been developing a realistic testing environment to simulate a variety of risks (Liquidation, Counterparty, Oracle, etc.) to Compound in one engine with low latency, high throughput, and high fidelity. Users can choose whatever inputs they want, and the engine will return a detailed analysis of the scenario and its impact on Compound.
Compound v3 Multi-chain User Portfolio Tracker
Paperclip Labs
Paperclip Labs shipped a cool application that allows users to track and monitor their positions across all positions in Compound. Metrics include PnL, balances, weighted APR across all positions, and a list of all transactions. Users can also see more granular data related to specific positions, such as health factors, collateral breakdowns, etc.
Check it out here
[Improved Chain Technical Risk Checklist for New Market Proposals
This proposal will incorporate Defisafety’s chainscore and Chainanalysis process into Compound’s multichain deployment checklist. Defisafety has already completed its first report on Linea, ZkSync, and Blast.
You can read all the checklists here
The Bonadocs grant streamlined Compound smart contract integration by implementing a custom widget allowing users to call Compound’s contract logic directly inside its documentation. This created a more seamless developer experience, as developers did not have to switch to etherscan or other tooling. Devs can query various functions inside the compound documentation and get a response. Bonadocs recently released an early version of the tool (demo)
Chaos Labs delivered a multichain risk application for Compound to allow community members to monitor risk and market changes within the protocol. The application supports all EVM deployments. The application also includes a set of customized alerts based on certain trigger events that have significance to protocol utilization and risk (liquidity alerts, supply/borrow increases, risks of liquidation, etc.). The alerts are available via discord bots and the cross-chain notification center in the application.
You can try out the application here.
Layer 3 created a collection of quests and streaks to onboard, engage, and retain users on Compound. The grant funds went directly toward compensating the users who participated in the various quests and streaks on Layer 3. Each quest was divided into three stages, targeting three objectives: Onboard, Engage, and Retain. Initially targeting 30,000 participants, Layer3 received over 44,000 participants in the program. You can check out other Layer3 programs here.
A GitHub crawler was developed fo
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Off-Chain Vote
Against
0 HVAXVC0%
For
5 HVAXVC62.5%
Abstain
3 HVAXVC37.5%
Timeline
Sep 10, 2024Proposal created
Sep 12, 2024Proposal vote started
Sep 13, 2024Proposal vote ended
Mar 26, 2026Proposal updated