Victor Ugochukwu · Oct 27, 2020 . 6min read
Gasless Voting yet to be explored by Compound Finance Users
Gasless voting on Compound Finance works using the delegateBySig function which enables offline signatures to participate in Compound governance vote delegation
By Victor Ugochukwu · Sep 10, 2020 . 6min read
In a recent tweet, Robert Leshner, Compound Finance founder hinted on the availability of gasless voting on the DeFi lending protocol but that users are reluctant in exploring it.
Leshner, in his tweet, was trying to encourage developers who may want to build on top of Compound Finance protocol to adopt the feature. He tweeted tagging the Compound Governance bot in as a member voted YES for proposal #22:
The Compound Governance process supports gas-less voting; but so far, nobody has build an interface with the feature turned on. For this passionate user spending $1.90 to vote 0.0001 $COMP — it needs to happen!
Apparently, due to rising gas cost on Ethereum network, transaction fees have spiked over the roof. The transactions on DeFi protocols are predominantly on-chain, which means more congestion on Ethereum.
Major DeFi platforms like Compound Finance administrates and makes changes using governance voting systems. In Compound Finance’s case, major COMP token holders may propose governance actions, which are executable code. Upon proposing, community members can then submit their votes in favour or against.
Gasless voting on Compound Finance works using the delegateBySig function. As explained in the Compound doc governance section, this works by Delegate votes from the signatory to the delegatee. It’s a method that has the same purpose as a Delegate. However, instead of carrying out voting on-chain, rather it enables offline signatures to participate in Compound governance vote delegation.
Moreover, as present in the Compound Finance documents, EIP-712 on Ethereum makes offline signatures and by extension, gasless voting possible. EIP aims to improve the usability of off-chain message signing for use on-chain. The main goal is to save gas costs to reduce the number of transactions on the blockchain.
Rising On-chain Voter apathy may not be solved by gasless voting as Leshner of Compound Finance may think.
There’s a rising concern as regards on-chain voter apathy. And this may not even be because of gas costs but the fact that DeFi users may be missing out on the news when it matters most. For instance, a research report by Ethereum Push Notification Service project (EPNS) shows the turnout of on-chain voters among different blockchain projects.
Therefore, EPNS proposes a decentralized notification system to increase voter turnout. It does this by providing timely and immediate information to DeFi protocol users like Compound Finance. Hence, even casual users can better involve themselves in the happenings of the protocol.
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Victor Ugochukwu · Oct 26, 2020 . 5min read