Coinbase Custody is launching support for Compound Governance, further enabling the decentralized finance ecosystem.
By Bryce Ferguson, Product Manager, Coinbase Custody
In tandem with Compound’s launch of its governance protocols, today Coinbase Custody is announcing support for Compound Governance, the related COMP token, and cTokens (cETH, cZRX, cUSDC, cBAT, cDAI). Coinbase Custody is currently the only custody provider and the only in-app voting experience for Compound, furthering our commitment to enabling access to the crypto economy.
Our offering will build on our battle-tested, institutional-grade cold storage solution to provide a secure and seamless way for our clients to govern Compound, an interest rate protocol that has seen explosive growth since its launch in late 2018. With more than $100M of assets supplied to Compound, institutional investors view Compound as a pillar of decentralized finance, and the recently announced COMP token as a powerful tool to create an upgradeable, resilient protocol.
“Compound Governance was designed with institutional investors in mind; investors are able to participate in governance decisions, or delegate our votes to active community stakeholders, without our tokens leaving supported custody infrastructure, such as Coinbase Custody. It’s a preview of how DeFi applications will evolve into upgradable, permanent financial infrastructure over time,” said Salil Deshpande, who was Managing Director at Bain Capital Ventures when the firm invested in Compound Labs, and is now General Partner at the new Bain-backed firm Uncorrelated Ventures.
Coinbase Custody will offer a fully integrated solution in our existing web app, allowing our clients to view and vote on Compound Governance Proposals, as well as delegate governance rights to third parties. In addition to supporting COMP and Compound Governance, starting today, we are excited to announce that clients can also deposit and withdraw their Compound balances (cETH, cZRX, cUSDC, cBAT, cDAI).
The Compound Governance Interface in Coinbase Custody
Governance will take many forms, all enabled by the COMP token (Note that Coinbase does not yet support COMP on its trading platforms). Coinbase Custody clients will have the option of manual voting, where they can vote directly on proposals, or delegate voting, where they can delegate their votes to a third party.
Both options have been optimized for security and ease of use — clients’ tokens will not leave our cold storage solution and clients will have access to them. Finally, clients will be able to explore their voting history at a glance with past votes and outcomes, all displayed within the Custody application.
To participate in Compound Governance, simply log into your Coinbase Custody account and navigate to the COMP asset page. To learn more about Coinbase Custody or to schedule a personal demonstration of the platform, please visit custody.coinbase.com
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