DeFi Lending Platform Compound (COMP) Launches New Streamlined Protocol Upgrade

Decentralized lending platform Compound has launched a new streamlined version of its protocol called Compound III.

With the update, Compound (COMP), an algorithmic autonomous interest rate protocol, is moving away from a pooled risk model that allows users to borrow any asset. blog post In the words of Robert Lechner, the founder of compound finance.

Leshner explains:

“with this [pooled-risk] Collateral in the model (pioneered by Compound) is constantly re-hypothesized. One bad asset (or oracle update) can drain all assets from the protocol.

Instead, each deployment of Compound III features a single borrowable asset. Once you provide collateral, it remains your property. It cannot be withdrawn by other users (except during liquidation). It also improves capital efficiency. Collateral becomes more “useful” if you know in advance which assets you are borrowing. “

Founder To tell The upgrade makes the compound cheaper, faster, safer and more capital efficient. The initial rollout of Compound III allows users to use Ethereum (ETH), Wrapped Bitcoin (WBTC), Chainlink (LINK), Uniswap (UNI), and USD Coin (USDC) with his COMP as collateral. can be borrowed.

COMP is trading at $46.81 at the time of writing. Ranked 122nd by market capitalization, the crypto asset has fallen nearly 9% over the past 24 hours and remains down nearly 95% from its all-time high of $910.54 set in May 2021.

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