Compound’s “Vision” Review and Rating
Today I begin to review Compound and use “Compound The Money Market Protocol” Version 1.0 February 2019 whitepaper (by Robert Leshner and Geoffrey Hayes) to rank it on the SVET Rating “Vision” (Singularity- Volume- Empathy- Timeline) sub-scale.
Main author’s idea is to apply a computative market-maker, “which is structured as a smart contract that implements the ERC-20 token specification” to provide borrower / lenders with 24/7 “instant” liquidity, which differentiates Compound from traditional matching protocols in DLT space.
Extract: “In this paper we introduce a decentralized protocol which establishes money markets with algorithmically set interest rates based on supply and demand, allowing users to frictionlessly exchange the time value of Ethereum assets.”
The number of DLT solutions available on this market is growing rapidly and alongside already “established” platforms like “Salt”, “Celsius”, “Unchained” or “Cred” there are constantly appearing new ones like Compound, which further enriches (and complicates) DeFi ecosystem with added independence from central authorities as well as extended users’ functionality. (“Singularity” is “b+”).
Nonetheless, according to Bloomberg “The global digital lending platform market size is expected to reach USD 15.3 billion by 2026 registering a CAGR of 20.7% from 2019 to 2026”. Hence, “Volume” is “a”.
At the same time “usury” DLT services are not likely to receive the same number of ardent, ideologically drive followers as some other community centric platforms (e.g. Dodge :)). However, the perceive high-level of Compound “decentralization” (not true) might allure many to take less reasonable stance on this issue. Hence, “Empathy” is “c+”.
As to Compound’s timeliness (or timing) I may believe it to be almost perfect (due to all this pending “economic crisis” expectations and growing number of self-employed) if not to the regulatory factor, which might put it under the lens of authorities sooner rather than later and result in a purge due to the consistent incongruity of crypto-regulations all over the world. “Timeline” is “b-”.
Result for “Vision” (Singularity- Volume- Empathy- Timeline): b+/a/c+/b-
Link: https://compound.finance/documents/Compound.Whitepaper.pdf
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