SIP (#007): Compound Stablecoin Market Launch

Summary

In context of our upcoming June 24th USDC Compound market maturity, we have known the community is looking for a dynamic and interesting way to deploy their stablecoins for a reasonable yield.

We had planned to utilize Rari and immediately launch our Arbitrum deployment alongside a new Rari pool, however in context of the recent Rari hack, and the high chance of no reimbursement (Citation: https://www.tally.xyz/governance/eip155:1:0x0BEF27FEB58e857046d630B2c03dFb7bae567494/proposal/54737972228715148291831450377954475770670423675395942151334883116464258243647

We now know that we need to look towards other markets until Rari can resolve their situation.

With that in mind, the team and community has prioritized development of Swivel v3, and open and future-proofed version of Swivel that integrates:

  • Yearn
  • Euler
  • Aave
  • Lido
  • EIP-4626
  • Interest Protocol
  • Optimized Rari
  • Optimized Compound

Swivel v3 will be audited by Code4rena starting 7/05, and the community can track progress here: Swivel v3: ExchangeRate Adapters, Protocol Enum, Custom Errors by JTraversa · Pull Request #197 · Swivel-Finance/gost · GitHub

Proposal

With all this context, we are in the need of a more temporary market deployment, and are proposing the creation of a short-term (3-6 month) stablecoin market on the Compound protocol.

Voting

The options will be:

  • DAI
  • FEI
  • USDC
  • USDT
  • Wait for Swivel v3

:+1: coud we vote for multiple options?

Hm looking at Compounds markets USDC seems to have the most rate volatility over 1%