$COMP Frenzy Continues With Leveraged Yield Farming and Coinbase Listing

Also, dYdX adds USDT support for Bitcoin perpetuals, Bancor discovers vulnerability, Wyre launches Wallet Passes

Hello Defiers! Lots going on in DeFi

  • How to maximize your COMP mining with Instadapp

  • Coinbase lists COMP

  • Bancor finds potential exploit

  • Wyre allows dapp to connect with Apple and Google wallets

and more :)

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How to Maximize Your $COMP By More Than 4x

By DeFi Dad

This week, we all witnessed a market frenzy to participate in liquidity mining as the Compound Finance team began distributing the $COMP governance token. Each day, smart contracts distribute 2,880 COMP to users of the protocol, 50% to suppliers and 50% to borrowers.

In the following video, I share a powerful way to earn more $COMP tokens by maximizing exposure to lending and borrowing on Compound, using flash loans to build a leveraged position with stablecoins, all thanks to a tool built by Instadapp.

Imagine you start off lending 100 DAI, but by the end, you're lending 300 DAI and borrowing 200 USDT, qualifying you to earn more $COMP tokens daily. This DeFi super power on Instadapp is appropriately named “Maximize $COMP Mining” and it allows anyone to increase their participation and rewards in Compound liquidity mining (aka COMP mining aka yield farming).

The best part about this is anyone can do it! That's the power of p2p DeFi applications. All you need is an Ethereum wallet, an internet connection, funds you're willing to risk, and a little courage.

To maximize $COMP mining on Compound, watch my video tutorial below and check out the DeFi superpower yourself on Instadapp: https://dsa.instadapp.io/compound

Helpful Resources:

  • You can find the Market Distribution Table for Compound which shows how many $COMP tokens are being distributed daily to the lenders and borrowers of 9 different markets: https://compound.finance/governance/comp

  • Here's where I found the Gross Supply and Gross Borrowed amounts in the 9 markets across Compound, to calculate that borrowing against USDC or DAI collateral with USDT debt, would be the best way to maximize $COMP earnings: https://compound.finance/markets

  • The tweet from Samyak Jain, CoFounder of Instadapp, which first inspired me how I can maximize $COMP mining is here:

Samyak Jain @smykjain
I just went short on $USDT using $DAI as collateral on
dsa.insatdapp.io/compound using maximum $COMP mining recipe. Looks like I'm earning way more than I'm paying interest with the current $COMP price hovering around ~$60. #YOLO

Disclaimer & Risks

Instadapp and Compound did not pay me to produce this video. This is not financial advice and you should approach all DeFi applications, wallets, and protocols with caution. Please be aware there is always risk in using DeFi, including technical risks (ie smart contracts hacks), financial risks (ie liquidity crises), and potentially admin risk (admin key compromise, governance vulnerabilities). Also, there is risk in using leverage, especially if the dollar-peg for USDC, DAI, or USDT were to ever fail, which could cause an Instadapp leveraged position using this Maximize COMP Mining to be liquidated and lose invested funds.

Coinbase Lists COMP Four Days After Token’s Launch

By Cooper Turley

COMP - the hot new governance token by Compound Finance - was listed on Coinbase Pro less than a week after its initial distribution on Monday. The announcement comes as COMP surges to $121 from $16 when it was first listed. That’s a fully diluted market cap of $1.2B, the highest in DeFi.

Bancor Discovers Vulnerability Hours After Code Update

By Sebastian Aldasoro

Bancor discovered a vulnerability in its code hours after releasing an update on its smart contracts. The team was able to save most of the $455k at risk, except for $135k in the hands of arbitrage bots. 

dYdX Adds USDT for Bitcoin Perpetual Futures Firepower

By Cooper Turley

dYdX added support for USDT on its permissionless Bitcoin perpetual futures, instantly supercharging the platform's flagship product with $5.7B in potential liquidity. The market is averaging oughly $1M in trading volume per day.

Wyre Releases Native Apple and Google Wallet Integration

Wyre, a fiat-to-crypto on/off-ramp, launched Wallet Passes for crypto applications to more easily connect with users on their mobile phones.

Wyre’s product allows dapps to create cards stored in Apple and Googles wallets, with QR codes that link back to the dapp, much like an airline boarding pass. Wallet passes also allow dapps to send push notification to users, to hopefully drive higher participation and make sure they’re not missing important developments, such as a governance vote.

Image source: Wyre Medium post

Creators, Communities, and Crypto: Fred Ehrsam

Pradigm’s Fred Ehrsam talks with Blake Robbins (Ludlow Ventures) and Jesse Walden, (ex a16z) about how creators and internet communities can use crypto and potential demand for tokenized products.

“Imagine Yeezy drops being done this way. As we’ve seen with the Chinese versions of sneaker marketplace StockX like Poizon and DoNew, most of the activity comes from people trading the shoes synthetically, “ Fred said. “The initial pitch for StockX was that you were never even going to get your physical shoes,” Blake said. “An investor friend of mine who saw that pitch was basically like, “I know the new Yeezys are coming out, I know they’re going to go up in price, just let me buy shares in it”

How does DeFi cross the chasm? by Jesse Walden

Crypto investor Jesse Walden discusses three potential narratives that may drive decentralized finance to go from niche to mainstream: 1. banking the unbanked, 2. becoming a casino for institutional investors, 3. non-financial consumer apps lead the way. Walden is most excited by the latter.

“My view is that DeFi gets a lot more interesting once there are mainstream users conducting real economic activity on-chain, beyond crypto speculation.”

Everyone wants to get their $COMP.

Ethereum addresses climbing to 2018 levels.

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About the founder: I’m Camila Russo, a financial journalist writing a book on Ethereum with Harper Collins. (Pre-order The Infinite Machine here). I was previously at Bloomberg News in New York, Madrid and Buenos Aires covering markets. I’ve extensively covered crypto and finance, and now I’m diving into DeFi, the intersection of the two.