Quick Start: Supplying Assets to the Compound Protocol

Examples for supplying Ethereum assets to the Compound Protocol.

Full Quick Start Tutorial on the Compound Medium Blog

If you want to supply assets directly to the protocol from your Ethereum wallet using JSON RPC and Web3.js, see the web3-js-examples folder. JSON RPC can be utilized in the web browser or with Node.js.

If you want to supply assets to the protocol from your Ethereum smart contract, see the solidity-examples folder.

What is Compound?

Compound is an open-source, autonomous protocol built for developers, to unlock a universe of new financial applications. Interest and borrowing for the open financial system. Learn more on the website:

Setup

The code in this repository can be used to supply assets to Compound on the Mainnet, any public test net, or your own localhost with Ganache CLI.

If you haven't already, install Node.js LTS. Clone this repository, cd to the root directory of the project, and run:

git clone git@github.com:compound-developers/compound-supply-examples.git
cd compound-supply-examples/
npm install

We'll need npx for this project. If you don't have npx, install it using this command:

npm install -g npx

If you want to use the script examples in the web browser, you'll need to first import web3.js in your HTML file using the following line. You'll also need to import the JS example files into your HTML. This step is not necessary if you are running the examples with only Node.js.

<script src="https://cdn.jsdelivr.net/npm/web3@1.2.6/dist/web3.min.js"></script>

Running a Local Ethereum Test Net with Ganache CLI

To get the localhost test net running, use the following commands in a second command line window. The command runs Ganache CLI and forks the Main Ethereum network to your machine.

If you are not running your own Ethereum node, make an Infura account at https://infura.io/. Accounts are free. Get a project ID and supplant it into the terminal command below.

cd compound-supply-examples/

## Run a fork of Mainnet locally using Ganache CLI
npx ganache-cli \
  -f https://mainnet.infura.io/v3/<YOUR INFURA API KEY HERE> \
  -m "clutch captain shoe salt awake harvest setup primary inmate ugly among become" \
  -i 1 \
  -u 0x9759A6Ac90977b93B58547b4A71c78317f391A28

• -f Forks the Main Ethereum network to your local machine for development and testing.
• -m Runs Ganache with an Ethereum key set based on the mnemonic passed. The first 10 addresses have 100 test ETH in their balance on the local test net every time you boot Ganache. Do not use this mnemonic anywhere other than your localhost test net.
• -i Sets an explicit network ID to avoid confusion and errors.
• -u Unlocks an address so you can write to your localhost test blockchain without knowing that address's private key. We are unlocking the above address so we can mint our own test DAI on our localhost test net. The address for minting DAI changes occasionally (see Minting Localhost Test DAI section below for updating).

Supplying Assets Directly via JSON RPC

These code examples can be run by a web browser or with Node.js. If you want to use a web browser, you'll need to import the web3.js script in your HTML or JS file (see import above).

Running these scripts will give your wallet cETH and cDAI. These are ERC20 Tokens that can be used to redeem an ever-increasing amount of the underlying asset. The cToken exchange rate increases every Ethereum block, they can be transferred, and can be used to redeem.

Localhost Test Net

• Run your local test net in a second command line window using the command above.
• If using DAI (an ERC20 token example), you need to first mint some for your wallet using node seed-account-with-erc20/dai.js. You may need to update the DAI Mainnet contract address and the MCD_JOIN_DAI address in the script. This changes periodically as DAI is improved (see Minting Localhost Test DAI section below for updating).
• cd web3-js-examples/
• node supply-eth-via-web3.js To supply ETH.
• node supply-erc20-via-web3.js To supply some DAI. The same code can be used for any other ERC20 token that Compound supports.

Public Test Net or Mainnet

• Make sure you have a wallet with ETH for the Ethereum network you plan to interface with (Main, Ropsten, Kovan, etc.).
• Insert the private key of your wallet in the scripts where noted. It's a best practice to insert the private key using an environment variable instead of revealing it in the code with a string literal.
• Replace the HTTP provider in the web3 constructors in the scripts in web3-js-examples/. Replace it using the string provided by the "Endpoint" selector in your Infura project dashboard. The local test net provider is http://127.0.0.1:8545.
• Next, replace the contract addresses in the scripts with the most recent ones. You can find Compound's cToken contract addresses for each network on this page: https://compound.finance/docs#networks. The DAI contract address can be found in the Maker DAO website change logs https://changelog.makerdao.com/.

Output Examples

Supply ETH via Web3.js JSON RPC

Output Example

$ node web3-js-examples/supply-eth-via-web3.js
My wallet's ETH balance: 99.97423756

Supplying ETH to the Compound Protocol...

cETH "Mint" operation successful.

ETH supplied to the Compound Protocol: 0.9999999998672074

My wallet's cETH Token Balance: 49.93244926

Current exchange rate from cETH to ETH: 0.020027056847545625

Redeeming the cETH for ETH...

Exchanging all cETH based on cToken amount...

My wallet's cETH Token Balance: 0
My wallet's ETH balance: 99.96892080053026

Supply ERC20 via Web3.js JSON RPC

Output Example

$ node web3-js-examples/supply-erc20-via-web3.js
DAI contract "Approve" operation successful.
Supplying DAI to the Compound Protocol...

cDAI "Mint" operation successful.

DAI supplied to the Compound Protocol: 9.999999999941178

My wallet's cDAI Token Balance: 482.50451639
My wallet's DAI Token Balance: 41

Current exchange rate from cDAI to DAI: 0.02072519460493164

Redeeming the cDAI for DAI...
Exchanging all cDAI based on cToken amount...

My wallet's cDAI Token Balance: 0
My wallet's DAI Token Balance: 51.0000001323868

Supply ETH via Solidity

Output Example

$ node solidity-examples/supply-eth-via-solidity.js
Supplied ETH to Compound via MyContract
ETH supplied to the Compound Protocol: 0.999999999985654072
MyContract's cETH Token Balance: 49.93244867
Redeeming the cETH for ETH...
MyContract's cETH Token Balance: 0
MyContract's ETH Balance: 1.000000000648673

Supply ERC20 Token via Solidity

Output Example

$ node solidity-examples/supply-erc20-via-solidity.js
Now transferring DAI from my wallet to MyContract...
MyContract now has DAI to supply to the Compound Protocol.
MyContract is now minting cDAI...
Supplied DAI to Compound via MyContract
DAI supplied to the Compound Protocol: 9.999999999942267983
MyContract's cDAI Token Balance: 482.50440136
Redeeming the cDAI for DAI...
MyContract's cDAI Token Balance: 0

Minting Localhost Test DAI

To mint some DAI for your localhost test network, you must use the Join DAI address. This can be unlocked when running Ganache CLI. You'll need to update the Join DAI address and the contract address each time the DAI contracts are updated.

The contract address can be found at https://changelog.makerdao.com/.

• Click the latest production release.
• Click contract addresses.
• The Mainnet DAI contract address is in the JSON value of the MCD_DAI key.
• The Join DAI address is in the MCD_JOIN_DAI key.

Once you're certain you have the latest DAI and Join DAI address:

• Run Ganache CLI using the command above with -u and the Join DAI address.
• Paste the new addresses in node seed-account-with-erc20/dai.js and save.
• Run node seed-account-with-erc20/dai.js
• See the other scripts in the seed-account-with-erc20 folder and the addresses to unlock in order to seed the wallet with other supported ERC-20s.