We should enable the existing-class pragma for postulated type classes:
postulate
MyShow : Set -> Set
myshow : {{ MyShow a }} -> a -> String
{-# COMPILE MyShow existing-class #-}
ok : {{ MyShow a }} -> a -> String
ok = myshow
Currently MyShow is not considered a class (since #284), and thus the instance arguments get turned into regular Haskell arguments and not class constraints:
ok : MyShow a -> a -> String
ok x = myshow x