The DeFi Saver Compound extension & improved EOA support
With the introduction of Compound v3, the Compound dev team introduced a new `permit` function that allowed execution of advanced, multi-step actions on your position with the use of special 'operator' contracts.
These multi-step options such as our Boost and Repay features previously required the user to keep their position on a proxy smart contract, such as the smart wallet or dsproxy that we use at DeFi Saver.
However, since the release of Compound v3, we've been working on making use of this new functionality at the protocol level and preparing improved support for users that prefer to keep their positions solely on their standard account (EOA). Improving interoperability and making DeFi Saver as open as possible to the broadest possible audience has always been our goal and we're always glad to explore new ways to achieve this.
Today, we're very happy to introduce Boost, Repay and Automation options for standard account (EOA) users together with the brand new DeFi Saver Compound v3 extension prepared in collaboration with the Compound team.
Using Boost, Repay and Automation for EOA positions
Starting today, you can use all three of these options without having to migrate your position from your standard account to your smart wallet.
This means that any Compound v3 user can now visit our Compound dashboard (or the new DFS Extension in the Compound app!) and, for example, unwind a part of their position in 1-tx in order to protect it from liquidation during a large market crash.
Note that you do still need to have a smart wallet created, as it functions as the 'operator' in this case and provides the needed execution layer for these advanced actions.
If it's your first time using DeFi Saver, the app will most likely ask you to create your smart wallet, though you might have one if you ever used protocols such as MakerDAO or Reflexer before. Either way, this is a one time thing, so just one additional transaction to consider.
Should you keep your position on EOA or the smart wallet?
There are pros and cons to consider with both approaches. While keeping your position on your standard account makes it manageable within both the official Compound app and DeFi Saver, that way you still won't have access to the full array of features we have available. For example, tools such as the Loan Shifter and the Recipe Creator will not be available to EOA users for the foreseeable future.
It's likely that at some point in the future these kinds of smart wallets will no longer be needed for executing more complex transactions, once account abstraction is introduced to Ethereum. But this is something that won't happen for at least another year or potentially multiple years and we think that in the meantime approaches around different proxy smart contract wallets are still a good option.
Still, in order to make the transition between the two options easier, we'll be looking to add reverse migration options for protocols where this is doable, such as Compound v3 and Aave v3, in the next month or so.
The DeFi Saver Compound extension
Over the past month or so, we've been collaborating with the Compound team on preparing a DeFi Saver extension that will be available within the Compound app moving forward. Today it's finally available at https://app.compound.finance/extensions/.
The DFS Extension provides all Compound v3 users with quick access to our Boost and Repay 1-tx leverage management options, as well as our Automation features which can provide users with liquidation protection and auto-leveraging up depending on market movements.
The DFS Extension currently supports the CompoundV3-USDC market and we will be looking to support all new V3 markets moving forward, such as the CompoundV3-WETH market that's likely coming soon.
Extensions are a new framework the Compound team envisioned as a way to allow different developer teams to build new features on top of the Compound protocol and make it available to all users.
We're extremely happy to have been chosen as the first team to get to work on this and we're looking forward to seeing what other teams come up with in the future.
The complete Compound experience
With the release of our improved EOA support and the new DFS Extension for Compound we are looking to provide users with all the features needed for optimal position management.
As a quick reminder, this includes Boost, Repay and Automation options, as well as our Loan Shifting dashboard for debt, collateral and protocol shifts, and the Recipe Creator that allows creation of custom complex transactions.
To further complete the experience we recently also introduced DFS Notify as an option for users of all protocols we integrate to set up notifications for changes to their position that they can currently receive via Telegram or email - make sure to check those out, too.
As always we'd love to hear your comments and feedback on all of this, as well as any suggestions for other features and improvements - looking forward to seeing you in the DeFi Saver discord to talk more!