Compound Finance has been one of the most popular lending platforms within the cryptoeconomy in recent months. Is it possible to become the most popular? It remains to be seen, however, if Compound will eventually overtake Maker, the Dai builders, in the DeFi ecosystem. The project’s developers have been making efforts to improve the “money lego” platform and make its users happier.
A Good Start
Compound’s march to maturity is one example. This week, attention was drawn to its new audit. The audit was published by the smart contract specialists at OpenZeppelin, which examines some of the most important smart contracts on the Compound platform.
The Good News?
One of these issues was the fact that Compound’s tech could be compromised by using admin keys.
Custodial Compound contract risk of *unsecured debt*
- cTokens that were used as collateral are not transferable, but they remain in the borrower’s wallet
- Admin could allow transfer of collateral cTokens… essentially enabling Compound debt to be undercollateralized
Robert Leshner, co-founder of Compound, later responded that the platform was aiming to become total decentralization. “Absolutely, the FAQ […] as well as the whitepaper […] provide clear information about admin privileges and our goal to eliminate any admin,” Leshner stated on August 27th.
You can either love or hate them, but compounding their contracts openly for everyone to see only works in their favor long-term.
New Assets
Compound, like other cryptocurrency platforms, only supports a few cryptocurrencies. This number is set to grow.
Compound has created a voting period that allows users to vote on which digital assets they would like to see on the platform. Maker, Tether and Decentraland, Huobi Tokens, Loom Networks, Numeraire, OmiseGo and Paxos are some of the projects being considered.
Voting has begun for the next two Compound Protocol assets! Two weeks of voting are available
“Voting will take place for 14 days. After that, the 2 winning tokens will become part of the protocol after successful security audits and the creation of cToken integration contract, and a determination about suitability,” Leshner stated.
The Berlin Bump
Berlin Blockchain Week took place earlier in the month. One of its events ETHBerlin Zwei saw no shortage of Hackathons built atop Compound. This gave the platform an immediate boost in usage.
According to DeFi Pulse, Compound is steadily overtaking Maker’s DeFi dominance. Maker still controls more than 50% of the DeFi ecosystem. However, Maker’s share of the pie is slowly decreasing as Compound gains more attention.
2/ The market’s total supply of DAI has dropped to $14M in the past 90 days due to CDPs switching to Compound and tools such as @InstaDApps Bridge. As a result, the stability fee has begun to drop.
It’s not that one is better than the other. Rather, both are at the top DeFi right now, and Compound is rapidly gaining momentum. As the DeFi Pulse team explained, Maker and Compound are not enemies.
“For the moment, they seem to have a symbiotic relation. Compound creates more demand and prints DAI for Maker.
Dharma Pivots
Dharma, a top-ten DeFi project at the moment, announced on August 29th that it would be relaunching its cryptocurrency services after having phased out its initial offering.
The twist? The twist? The savings product will be the first product offered by the project after the relaunch, as it moves away from crypto lending.