Olympus DAO

Summary:

Whitelist Compound for Olympus treasury deposits.

Background:

OIP-20 defined a framework for Olympus where 33% of excess treasury reserves can be deposited to earn yield in whitelisted protocols. At the time of this writing, the three whitelisted protocols are Aave, Convex, and Sushiswap(Onsen). This proposal seeks to add Compound to this whitelist while keeping the same 33% treasury deposit cap. As this is a whitelist proposal, a risk analysis was performed and can be found below.

Abstract:

Compound launched in late 2018 and has long had over 10 billion in TVL. The protocol is known for having a conservative approach to adding new assets as well as tweaking lending parameters which are both done via governance. By whitelisting Compound, Olympus would have a lower risk option for putting treasury assets to work.

Risks:

A vulnerability in the Compound protocol could lead to partial or complete loss of funds.

Protocol Analysis:

Using a risk analysis framework developed by the DAO, the Policy and Partnerships teams have attempted to score various protocols based on some subjective and non-subjective data. Compound scored very highly in this regard. The large TVL and track record of the protocol were also considered.

Motivation:

Whitelisting Compound will allow for Olympus to lend treasury funds in a battle-tested DeFi protocol to earn additional assets as well as the COMP governance token. This also increases our chances for a possible partnership in the future.

Full forum post here: https://forum.olympusdao.finance/d/128-tap-4-whitelist-compound-finance