[COMPOUND] Compound Growth Program: 12 Month Term

Forum Post for the 12 Month term of the Growth Program: https://www.comp.xyz/t/compound-growth-program-2024-renewal/5215

TL; DR;

AlphaGrowth proposes the renewal of the Compound Growth program for a tenure of 12 months. After a successful 4 month trial that saw compound launch on Optimism, phased rollout of USDT markets, a 1.8M ARB grant won by the Compound growth program (valued at 37,192 at the time of winning), a 150K OP grant (valued at 7,438 COMP at the time of winning), and additional wins outlined below. 

Going forward the Growth program will assume greater responsibility within the community in expanding the Chains, markets, tokens and any third party integrations for the protocol. We aim to increase TVL by $500 Million and increase revenue for the Compound DAO by $10M in the coming year. For this the Growth program requires 75,246 COMP for 12 months, which includes

• 40,200 COMP in program expenses (including developer charges, chain-market launch ops, grant consultation,marketing planning and more)
• 18,504 COMP in Marketing fund (to be returned if unutilized)
• 18,504 COMP in Integrations fund (to be returned if unutilized)

Wins:

The trial phase of the growth program, which spanned from December 2023 to April 2024, was successful in achieving a number of key milestones that will define the growth of the protocol in the coming year. For reference we accomplished the following wins in the last 4 months

• Launched Compound on OP network 2 weeks ago (currently $5MM TVL)

• Secured $3M grant from Arbitrum for Compound
• Kick started the process to launch USDT Markets on 4 existing chains
• Currently upgrading the rewards contract to be able to distribute rewards simultaneously in multiple tokens
• Marketing campaigns saw the following results:
  • USDC on Arbitrum saw active users increase from 1.6K wallets to 14K wallets and user counts are still rising.
    • Source
  • OP USDC market achieved 12000 active users in the second week of marketing the deployment. Source
• The following new assets are in the process of being listed:
  • LRTs: ezETH, weETH, rsETH
  • LSTs: rETH, stETH, wstETH
  • Native: USDC(Base), USDC(ARB), USDC(OP), USDC(Polygon)
  • Proposed(Not Ready): gmBTC
• Started Integrations:
  • Sommelier Finance Vault → Automated position management 
  • Qi Dao Base Integration → PSM for Base Link 
  • BaseSwap Link
• [PENDING] One $500K grant from an ETH L2
• [PENDING] Two separate $5MM Bootstrap & $500K grants from two EVM L2s
• [PENDING] Three $1M launch incentive grants from three ETH L2s

The trial phase of the growth program also presented opportunities for us to explore the strategies that work for Compound. We learned that some opportunities (like the following) take more time and effort.

• V2 ▶️V3 migrations:
• New Dapp integrations
• Wallet integrations
• Working with Institutional Custodians
• Centralized exchange integration

Why Compound Growth?

The time to act is now, propelled by a combination of market, technology, and trending macro dynamics that uniquely position us to seize emerging opportunities. Currently, over eight blockchain networks have expressed interest, with three already committing verbally to provide $1 million each in incentives to support our launch. This surge in interest coincides with the need to deploy the ARB grant strategically, ensuring we capitalize on this moment of heightened engagement and potential growth.

On the technological front, we've broken new ground with the creation of a multi-token reward contract—a first of its kind, exclusively available today because of our innovation. This isn't just about having cutting-edge technology; it's about utilizing it effectively. Like a high-performance vehicle, it requires a skilled driver to navigate the path ahead, and we are uniquely equipped to steer this initiative towards success.

Macro trends further underscore the urgency. Recently, Compound experienced a significant dip, losing $400 million in Total Value Locked (TVL) as cryptocurrency prices, including ETH and BTC, have fallen. To counteract this and bolster our platform, it’s crucial to diversify by adding new assets and expanding our markets. This will not only help recoup the lost TVL but also enhance the flexibility and options available to our token holders, making our ecosystem more resilient and adaptable to changing market conditions.

Priorities and Plan for Growth

• Total Value Locked (TVL) Expansion: Aim to increase TVL by $500 million across new and existing markets.
• Treasury Growth: Target generating $10 million in treasury growth for the DAO, ensuring the Growth program is cost-neutral.
• Market Development: Launch 8-15 new markets, including USDT markets on all applicable chains, with a focus on high TVL opportunities.
• Chain Expansion: Expand Compound to 4-6 additional blockchain networks, implementing quantitative criteria for chain selection.
• Strategic Partnerships: Establish high-value, industry-first partnerships and continue leveraging incentives from collaborations.
• User Acquisition: Significantly increase over 25,000 new users, leveraging successful campaigns and focusing on L2’s and new market launches solutions
• Infrastructure Expansions: Evaluate reputable partnerships for key infrastructure such as bridges and oracles and collaborate with new partners as new opportunities arrive.

Growth methodology

Asset and Market Expansion: During our initial trial period, a significant focus was on enhancing ways to grow and sustain Compound. This next phase aims to bolster our financial foundation while expanding our market presence strategically. We plan to launch between 8 to 15 new markets, with a particular emphasis on USDT markets, setting a standard for new market criteria to ensure each has the potential for at least $20 million in TVL. This approach not only drives growth but also assures that the benefits to the DAO outweigh the costs of the Growth program.

Chain Integration and User Growth: We are set to push for expansion onto six more blockchain networks, making substantial inroads in Chain integration by setting precise, quantitative selection criteria. This method will help the community understand the advantages and challenges of each new deployment. Furthermore, our user acquisition strategy has already shown promising results, with significant increases in user numbers on platforms like Arbitrum. By continuing to focus on Layer 2 solutions and securing more partnerships with entities like Revolut and OKX DeFi, we aim to dramatically expand our user base and strengthen our market position.

Through these strategic initiatives, Compound is poised to not only expand its footprint but also to solidify its standing as a leader in the decentralized finance space, driving forward with confidence and innovative vigor.

Contribution & Why Our Team is Essential

Compound operates within a dynamic and complex ecosystem, characterized by its decentralized nature and reliance on multiple contributors. Maintaining both high-quality standards and timely engagement in such an environment requires obsession. Our behind-the-scenes conversations play a critical role in reinforcing Compound's reputation as a consistent and reputable platform that is now ready to get creative in working with emerging market players.

Our team has spearheaded 15 key proposals and discussions during the trial phase of the Compound Growth Program, encompassing a range of topics from market expansions to contract upgrades. We our committed to driving Compound's governance forward.

Moreover, our proactive approach in generating new ideas and executing spontaneous projects has generated positive feedback and enthusiastic engagement from the community. These initiatives not only demonstrate our ability to anticipate and react to market needs in real time. Fostering the ongoing evolution of the Compound ecosystem.

Our business development team is unrivaled in the cryptocurrency s

... please visit link below to view full proposal

https://compound.finance/governance/proposals/248