cUNI

What is cUNI?

cUNI, or Compound Uni, atoken belonging to Compound III, an Ethereum Virtual Machine (EVM) compatible protocol designed to facilitate the collateralization of crypto assets for borrowing the base asset. This decentralized protocol enables accounts to earn interest by supplying the base asset. The initial deployment of Compound III is on the Ethereum network, with the base asset being USDC.

---

Recent Video Interview

Main points of the interview:

• Compound allows users to earn interest on crypto assets by lending them out or borrowing against them without intermediaries.
• Compound's automated interest rates adjust based on supply and demand, optimizing returns for lenders and borrowers.
• The protocol uses smart contracts on the Ethereum blockchain, ensuring transparency and security.
• Notable features include liquidation mechanisms to maintain collateralization and governance tokens (COMP) for decentralized decision-making.

---

Network Deployment and Security Measures

Deployment artifacts with contract addresses are available in the Comet repository deployments/folder. The v3 proxy is the sole address for interacting with a Compound III instance. Security is paramount, with the development team, third-party auditors, and consultants collaborating to ensure a safe and dependable protocol. Publicly verifiable contract code and balances are maintained, and a bug bounty program is in place for reporting vulnerabilities.

Interest Models and Asset Management

Users with a positive balance of the base asset earn interest based on a supply rate model, while those with a negative balance pay interest based on a borrow rate model. These models, set by governance, consider the utilization rate of the base asset, with interest accruing every second using the block timestamp. Collateral assets do not earn or pay interest.

Balances, Collateral and Borrowing Mechanisms

Users can add collateral assets using the supply function, subject to market supply caps. Each collateral asset contributes to the user's borrowing capacity based on its borrowCollateralFactor. The borrowing collateral factor represents the percentage of collateral value that can be borrowed. Users can borrow the base asset using the withdraw function, ensuring compliance with borrowing collateral factor requirements.

Account balances for the base token are signed integers, indicating supplied or borrowed assets. The supply function facilitates various operations, such as supplying collateral, repaying open borrows, or supplying the base asset. Balances are stored internally in Comet as principal values, with three methods available for supplying an asset.

Governance and Multi-chain Deployment

Compound III operates under the governance of COMP token holders and delegates. Governance proposals, voting, and protocol changes are managed through administrative smart contract functions. The Timelock contract controls all instances of Compound III, and specific protocol parameters are set through proposals.

The protocol is deployable on any EVM chain, provided access to on-chain asset prices and governance messages from Ethereum Mainnet. Multi-chain governance involves Mainnet's Timelock acting as the administrator for all community-sanctioned instances. Each deployment outside of Mainnet requires a Bridge Receiver and Local Timelock for governance coordination.

Compound Team Background and Intergrators

Established in 2017, Compound finds its roots in the collaboration of Robert Leshner and Geoffrey Hayes. Both individuals had notable roles at Postmates, a prominent online food delivery service. Currently, they maintain leadership positions at Compound Labs, Inc, the software development firm responsible for the Compound protocol. At present, Robert Leshner holds the position of CEO, while Geoffrey Hayes serves as the Chief Technology Officer (CTO).

While both founders bring a wealth of experience in launching successful ventures, Robert Leshner, in particular, stands out for his active involvement in fostering the growth of the blockchain space. Beyond his roles at Compound, Leshner has demonstrated his commitment by publicly investing in well-known crypto platforms such as Argent Wallet, Opyn, and Blockfolio.

Many community-built interfaces intergrate with Compound, namely Coinbase Custody, Anchorage, Fireblocks, Argent, Zapper, imToken, Exodus, InstaDapp, Zerion, Enzyme, Ankr, Cointracker...

Project Development

The end of January 2024 marked a significant milestone for Compound III as it not only surpassed but excelled beyond the achievements of Compound v2 in terms of both total assets and borrowing. Since its inception in August of the previous year, Compound III has experienced remarkable growth, boasting a substantial total asset value exceeding $1.6 billion and a substantial borrowing volume reaching $490 million. This success is spread across seven markets meticulously curated within the protocol, operating seamlessly on four different networks.

cUNI Price Analysis

As of November 24 2024 cUNI has a marketcap of $20M. This is {{percentagefromath}} from its all time high of $0.908721. In terms of its tokenomics, there's a total supply of 91M with 100% currently outstanding. Keep in mind cUNI has a fully diluted value of $20M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.