Compound

Using wUSDM as collateral allows users on Compound to secure a stable yield through arbitrage, even when borrowing rates are low. While the current circulating supply is limited, the Optimism Yield-bearing assets incentive program is expected to promote ecosystem growth, which would also bring grant funds to Compound.

Using wUSDM as collateral allows users to arbitrage yields even when borrow rates are low. Additionally, since USDM is available on multiple chains, Compound can expand its user base, increase liquidity, and improve risk diversification.

The user bases of both Compound and Mantle are expected to expand. Also, Mantle Treasury holds substantial assets and it is expected to benefit from the growth of the Mantle ecosystem.

Adjusting the IR curve is a flexible approach in response to market demand. Additionally, reducing excessive incentive spending would ease the financial burden on the protocol. Through these adjustments, it could reduce the risk of excessive utilization, balancing ease of use for users with the protocol’s profitability.

This proposal is expected to meet the incressing market demand, enhance protocol stability, and improving user experience.

The current APR for stablecoins on Compound is lower compared to Sky Protocol. However, deploying the USDS market and listing sUSDS can address this issue. The upgrade of Dai has the potential to attract more users and increase liquidity. Deploying the USDS market presents an opportunity for Compound to benefit from these advantages.