Compound introduces new staking product after controversial $24M token allocation

Compound Finance has settled with crypto whale Humpy and his Golden Boys radical implicit the contentious allocation of 499,000 COMP tokens worthy astir $24 cardinal to a yield-bearing protocol.

On July 30, Humpy announced that Proposal 289, which had sparked the controversy, was “now canceled,” pointing retired that his actions brought the task to the limelight and that its autochthonal COMP token volition present beryllium turned into a “yield-bearing asset.”

Following the news, COMP worth bucked the broader marketplace downturn to summation by astir 7% to $51 arsenic of property time, according to CryptoSlate’s data.

Compound Finance is 1 of the largest DeFi lending protocols successful the industry, with over $3 billion worthy of assets locked.

Compound’s caller staking product

Bryan Colligan, a typical from Compound Finance, disclosed that the platform’s colony with Humpy centers connected creating a caller staking product. This merchandise volition allocate 30% of existing and caller marketplace reserves annually to staked COMP holders based connected their involvement size.

Colligan wrote:

“These Staking Rewards volition beryllium distributed with the aforesaid cadence arsenic the COMP token rewards that presently boost markets connected Compound per Gauntlet’s inducement recommendations.”

The Compound decentralized autonomous enactment (DAO) volition govern the caller staking product. It volition beryllium audited by a designated information spouse appointed by the Compound and continuously scrutinized by the DAO’s Market Risk Manager.

The community, including Humpy and DeFi hazard manager Gauntlet, has mostly welcomed the news. Humpy expressed afloat support of the move, portion Gauntlet remarked:

“Thank you for this proposal. Gauntlet supports exploring a Compound staking product. As a work supplier to the DAO, we are acceptable to behaviour immoderate requested analyses of projected mechanisms oregon designs and assistance guarantee a steadfast reserve ratio is maintained.”

Meanwhile, Doo from StableLab pointed retired that Compound has to instrumentality its governance information much earnestly to forestall a recurrence of akin events successful the future. It added:

“We judge it’s important to see Compound Governance information successful the agelong term. Our concerns see definite parties cementing Voting Power by giving other inducement to stakers to them. There should beryllium respective governance changes to summation governance security.”

The station Compound introduces caller staking merchandise aft arguable $24M token allocation appeared archetypal connected CryptoSlate.