Edge
Overview
Chaos Labs has been selected to partner with Compound through the Grants program to develop a Compound Cross-Chain Analytics and Observability platform. This platform will deliver comprehensive analytics and observability capabilities across all EVM-compatible Compound deployments, allowing the Compound community to access all relevant protocol-related data and risk through a unified and holistic platform.
Compound is a decentralized borrowing and lending protocol leader within the DeFi ecosystem. As one of the largest lending protocols globally, it necessitates advanced analytics, risk monitoring, usage analysis, trend identification, and other relevant capabilities.
Goals
The Compound Cross-Chain Analytics and Observability platform will enable users to understand better the overall risk and health of the Compound protocol across all deployments. This platform will facilitate macro-level decision-making regarding assets deployed across multiple chains, empowering users to make informed and strategic choices. It will also provide granular insights into Compound usage, trends, and real-time data analysis.
Below we detail some of this new tool’s core features and offerings.
Standalone Deployment Risk and Analytics
This pillar comprises several critical features that enable comprehensive risk management and analysis on a per-chain basis. These features include, but are not limited to:
- Aggregated System Metrics: overview and analysis of all positions in the protocol
- Market Analysis and Metrics: borrower/supplier holder analysis and distribution of LPs
- Oracle Comparison View: comparison of Oracle price feeds and on-chain exchange rates across different liquidity sources
- Liquidity View: analysis of Compound asset liquidity in comparison to overall chain asset liquidity
- Transaction Stream: a display of all transactions and events emitted from Compound smart contracts
- User Metrics Dashboard: real-time insights into total origination loan revenue, distribution of supply/borrow per EOA, health score relative to current asset price and calculated within the range of N% price fluctuation, accounts at risk of liquidation, and outstanding debt.
Aggregated Borrow and Supply Trends
Chaos Labs will provide insights into borrow and supply trends across all chains through the following features:
- Total Borrow and Supply over time across all chains: This feature allows users to identify relative trends in growth across all chains.
- Time Series of Relative Borrow and Supply overtime per chain: The growth of a specific protocol deployment is limited by the growth of the blockchain on which it is deployed. This feature tracks not only absolute volume but also relative market share. For example, if the total supply to the protocol grows from $50M to $80M, it may be interpreted as an impressive 60% growth. However, if the total TVL in the protocol grew by 300% over the same period, it actually means that the portion of the protocol’s activity from the total ecosystem in the protocol has shrunk.
- Relative Borrow and Supply across all chains: This feature shows how each market grows as a percentage of the total protocol activity. Viewing this over time, users can identify deployments that are becoming more or less successful and adjust their efforts accordingly.
Observability, Monitoring, and Alerting Aggregations
Using its notification center, Chaos Labs will implement an observability, monitoring, and alerting system. The alerts will be customized based on trigger events that have significance to protocol utilization and risk. Some examples include:
- Chain-specific Value at Risk Of Liquidation: When the Value at Risk Of Liquidation in a single chain deployment follows a dangerous pattern, such as crossing a long-term moving average or jumping sharply over a short period.
- Chain-specific relative supply increase: When supplied amounts in a single chain deployment exceed a predefined percentage of the total TVL on the chain.
- Chain-specific relative borrow increase: When borrowed amounts in a single chain deployment exceed a predefined percentage of the total TVL on the chain.
- Asset/Chain-specific liquidity alerts: When the available liquidity of an asset on a single chain drops significantly or remains below a predefined threshold.
- Cross-Chain asset liquidity alerts: When the available liquidity of an asset across multiple chains drops significantly or remains below a predefined threshold.
Next steps
We're excited to begin formally contributing to the Compound ecosystem and building a relationship with the community!
The feature set above is a sneak-peak into what the Compound Cross Chain Analytics platform will provide, but we have much more in store! We invite everyone to stay on the lookout for new updates on our progress and reach out with feedback or ideas.
As always, direct any questions or suggestions to us on Twitter.