18.05.2021

Compound Implements HIstoric Community-Driven Governance Proposals

The proposals come ahead of the launch of Compound’s Governance token (COMP) – which will be used to facilitate community-driven protocol upgrades and development.

Decentralized finance, or DeFi, protocol, Compound, has implemented its first two community-driven governance proposals in the past week.

Compound implements community upgrades

The first proposal asked the community whether the Compound protocol should introduce support for Tether (USDT), inspired by a September 2019 poll that saw Tether and Maker (MKR) rank as the top two most-requested crypto assets for Compound.

The vote saw over 90% of the Compound community vote in favor of USDT support and was executed on May 1. The proposal introduced USDT as “a borrowable asset with its own interest rate”, however, Tether will not be supported as collateral.

To support USDT, the Compound team developed a modified cToken contract introducing support token transfer fees in underlying tokens.

Community drives change to Dai interest

On April 27, DeFi app, Dharma, submitted Compound’s second governance proposal – seeking to adjust the interest rate mode for DAI on the platform.

The proposal sought to create a steady upward trajectory for cDAI interest rates, replacing the current system where minimal interest is earned until over 90% of cDAI is lent on the platform.

Dharma’s proposal was passed on April 30 with a whopping 97% approval rate.

The implementation of the proposals has been described as the first upgrade to a major DeFi protocol exclusively conceived and developed by the platform’s users as opposed to a centralized foundation.

Commerzbank Makes Milestone Blockchain Trade With Logistics Provider

Commerzbank and Landesbank Baden-Württemberg (LBBW) have completed another milestone trade on the Marco Polo platform. As reported Aug. 15, on this occasion, logistics provider Logwin AG was integrated into the digital process chain, digitally and in real time.

Same same but different

As with an earlier transaction, the trade took place between German supplier, KSB, and Taiwanese mechanical engineering group, Voith. Another shipment of special hydraulic couplings was delivered using blockchain technology via the Marco Polo trade finance network.

However, for the first time ever this transaction included the integration of logistics provider Logwin with transport details being entered directly into the network. LBBW international trade and payment solutions head, Matthias Heuser, explained:

“Now, an independent third-party – in our case the logistics provider – is able to trigger a payment obligation in favour of the supplier.”

KSB export financing head, Ralph Van Velzen, praised the blockchain integration for ensuring payment commitment becomes effective only if the goods are physically in the hands of the logistics provider, and on their way to the delivery destination.

Future Integrations

Commerzbank plans to further push the system by integrating other parties into the trade transaction process. These might include insurance providers, inspection authorities and local chambers of commerce.

The Marco Polo network is built on R3’s Corda distributed ledger technology platform. As Cointelegraph reported yesterday, R3 has embarked on an aggressive expansion program, and plans to open a new Dublin office in early 2020.

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