Compound’s COMP token distribution incentives are insane. Deposits and Borrowings in Compound have already risen by 15% as of June16, 2020.
My opinion is based on the following article, so one needs to read that first to understand the incentives provided by the COMP token
“COMP Distribution Design Will Incentivize Phantom Growth and Open Pandora’s Box” by Henry He
Below is my opinion and an attempt at a prediction for the fun of it
With such incentives, it looks like Compound will become a Gravity Well.
So, what will competitors do? Mostly adapt and offer similar incentives.
Plasma is a framework for layer 2 blockchains, based on fraud proofs which are enforced on the layer 1 blockchain, which in this case is Ethereum. The Plasma framework is not a precise specification but rather a layout.
The following is my view of Alibaba’s Tech and speculation of how OmiseGO has a chance of fitting in.
Alibaba uses an internally built powerful trading platform called TMF. Some points about it are
There are three types of participants here
1. Donors making donations continuously from their donor accounts in a currency of their choice (eg. USD, ETH, BTC, etc.)
2. Charity receiving donations from donors continuously in their distribution account in a chosen currency(eg. Stable coin like DAI, etc.)
3. Recipients receiving from the charity at small intervals in their recepient accounts in a currency of their choice (eg. ETH, BTC, etc.)
The OMG DEX makes it possible for donors to donate in any currency and recepients to receive in any preferred currency.
So, many donors send to the charity(one distribution account)…
Reading the White Label Wallet section of the OmiseGO white paper, I’ve converted my understanding into a visual design. Please zoom in to read the labels in the image.
The inferences I gathered from this design struck me as quite clever and is as follows