Mission: Provide grants to projects, ideas, and events that benefit Compound and its ecosystem.
The application will only be shared with members of the grants committee.
Protocol and parameter development
Apart from acts of stewardship and generosity, there is little to no incentive for community members to propose technical updates to the protocol. With no carrot with which to motivate community members to propose changes, the protocol isn’t able to innovate as quickly as it should be innovating in a dynamic and competitive market. We should note that in a minority of cases community members did receive payment for work done (for example, see the work done by Gauntlet on the COMP Contributor Grants proposal), although here too, the incentive to contribute was not well-designed since it required Gauntlet to front audit and development costs before knowing the proposal to pay them would pass. To encourage community members to propose changes, the program will fully or partially pre-fund development and audit costs. In doing so, we hope to encourage more proposals, which will lead to more innovation and as a result, a far better Compound for all of us.
Making technical updates to the protocol is risky business: smart contracts are immutable and control billions of dollars in user funds. An error in a technical update can have serious consequences. Because of this, it is considered best practice is to have an auditor review the proposed update for soundness prior to its submission. Unfortunately, these audits are expensive, particularly for individual contributors who need to pay for them out of pocket. We intend provide grants that pre-fund audit costs for soon-to-be proposals. We hope this will encourage more individual contributors to propose technical updates to the protocol.
Business development and integrations
A greater amount of liquidity makes Compound a better product for all users. To grow liquidity, Compound should be integrated with as many applications as possible. To that end, we aim to fund integrations that grow usage of Compound. In funding integrations, we will effectively be funding the business development function for the protocol.
It’s very likely that there exist uses for Compound that haven’t been explored yet. Hackathons are a fantastic way to explore design spaces, and the program intends to sponsor them.
This one speaks for itself: bug fixes and minor protocol updates will be covered by the program.
It’s difficult to know ahead of time all of the grant applications that will come through. Just because an application does not fit neatly into one of the above buckets doesn’t mean it’s not valuable to the Compound ecosystem. So long as an application benefits Compound directly, we will consider it for a grant. Applications for miscellaneous improvements to Compound fall into this bucket. Because the scope of this bucket is broad, we consider it to be low priority compared to the narrowly scoped buckets above.
Compound Grants Program
To provide grants to projects, ideas, and events that benefit Compound and its ecosystem.