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Just has a chance to read the http://compound.cash paper, tbh more questions than answers here. So I will ask myself the questions and then make speculative leaps at answers for the fun of it.
Q1. What is the relationship between CASH and COMP?
Q1. What is the relationship between CASH and COMP?
A1. Weirdly the answer here might none at all. CASH will be used to secure the POA chain and govern it, but there’s no mention of COMP which presumably will still live on ETH and govern that instance. Usually this would be untenable but most COMP holders will get CASH via equity.
Q2. Why POA?
A2. I actually have no idea, it doesn’t make much sense to me. I know Compound loves to own the whole stack but this feels like a huge execution risk factor to me.
A2. I actually have no idea, it doesn’t make much sense to me. I know Compound loves to own the whole stack but this feels like a huge execution risk factor to me.
Q3. Does compound chain provide any benefits over other technology they can also afford, such as say a train, or Optimistic Rollups?
A3. It provides control which has been a pretty clear goal for Compound, they like to build things which they can tailor to their exact needs. The compound governance module is a great example and it’s been a huge public good for DeFi. Outside that I feel like the answer is no.
Q4. But what about like bridges and starports and shit?
A4. I feel like there is an assumption there will be value to port in, and that increasingly feels like it will not be the case. Look at BTC, there are multiple bridge implementations already done meaning it does not make much sense to reimplement them for each project imo.
Final question!
Q5. If the benefits are marginal vs implementing this on Ethereum L2, why do it?
Q5. If the benefits are marginal vs implementing this on Ethereum L2, why do it?
A5. This is probably an overly cynical answer, but I feel like most of what is proposed here would have made a lot of sense 18 months ago. So the answer is because they promised to do it. I assume this has been on the roadmap for a long time, but it has not held up well imo.
I’ve said this many times, I trust @compoundfinance with my crypto more than almost any other DeFi project. But this feels like something which should have been scrapped a while ago. That said if anyone can pull it off they can, so I’ll be watching closely to see it play out.
