Compound Monthly Financial Report & Analysis - May 2023
This Newsletter issue covers Compound DAO & Protocol Performance during May 2023
Table of Contents
Governance Recap
Crypto Markets & COMP Analysis
Supply & Borrowing Analysis
Compound V3 on Polygon PoS
Compound V3 on Arbitrum
Revenues Analysis
Governance Recap
Four governance proposals were voted for - and executed - in May 2023.
Refresh Polygon COMP was successfully executed on May 7, 2023. This was after it failed to pass the previous month.
The proposal Initialize cUSDCv3 on Arbitrum was executed on May 15, 2023.
Risk Parameter Updates for Polygon Compound v3 USDC (5/9/23) was executed on May 18, 2023.
Interest Rate Curve Updates for Ethereum Compound v3 USDC was executed on May 31, 2023.
Crypto Markets & COMP Analysis
BTC dropped 7.554% to end the month at $27,216
ETH, on the other hand, ended the month at virtually the same price it started it with a 0.1% drop to end at $1874 compared to $1876 at the end of April.
COMP continued its slide to $35.88, a 13.33% month-on-month price decrease.
Tornado Cash DAO, the DAO managing the Ethereum mixer, accidentally passed a malicious proposal that gave the attacker access to the DAOs entire treasury, as well as the ability to mint TORN for themselves. They later floated a proposal to return most of the stolen TORN back to the DAO, which passed successfully.
Supply & Borrowing Analysis
Data Source: DefiLlama
Monthly Supply, borrowing, and Available Supply are the average daily data (sourced from DefiLlama) for the month.
Compound v2’s total liquidity fell by 10.09%. Meanwhile, Compound v3-USDC’s liquidity grew by 10.43% of its average monthly supply.
Data Source: DefiLlama
Compound V2’s total Supply dropped a further 10.09% to $1.301 Billion in May 2023.
Data Source: DefiLlama
Similar to supply, Compound v2 Borrowing has also continued to slow. It dropped a further 5.07% in May 2023.
Data Source: DefiLlama
Compound V3 USDC supply has continued its upward growth, increasing by 10.53% in May.
Data Source: DefiLlama
Compound V3 USDC borrowing also continued growing, putting a 14.86% MoM increase.
Compound V3 on Polygon PoS
Data Source: DefiLlama
The data used is the average TVL for the month. Compound V3 launched on Polygon PoS on March 7, 2023*. In March 2023, $11.64 Million was on Polygon. This increased by 49.04% in April 2023 to $17.35 Million, and a further 13.95% to average $19.77 Million in May 2023.
* The average TVL for the month of March was for only 24 days.
Compound V3 on Arbitrum
Compound V3 launched on Arbitrum on May 17, 2023. The average daily TVL for May 2023, was $9.18 Million.
Revenues Analysis
Data Source: DefiLlama, Flipside Crypto
v2 Suppliers generated 1.69 M USD in May 2023. This was a rise of 1.8y% compared to the previous month.
v2 borrowing generated 173k USD for the protocol reserves during the month of May, almost the same amount as the previous month.