Compound Finance is about to launch its own blockchain.
The aim is to integrate more assets from other registries.
The COMP has grown by 40% since the start of December
The DeFi lending and borrowing platform Compound Finance is launching its own distributed ledger to enable the transfer of value and liquidity.
Compound Finance pioneered liquidity farms, being one of the first to launch incentives for the distribution of governance tokens in June 2020. DeFi protocol now goes further with its latest product, the Compound Chain.
The new blockchain has been described as being able to store and inexpensively transfer value and liquidity between peer registers. In other words, it is cross-chain interoperability.
Today we are pleased to present to you the white paper on the Compound Chain, a distributed ledger capable of transferring value and liquidity between peer ledgers.
Another Ethereum rival?
One of the goals of the new ledger is to bring more assets to the Compound ecosystem, without necessarily competing with Ethereum :
Compound Chain ”is a tool that could bring more assets into the protocol from a variety of registers eg Polkadot, Solana, Optimism PBC, Quorum, Celo, etc. It is designed to complement Ethereum contracts, be controlled by the governance of the COMP, and extend the effects of the DeFi network.
At a virtual DeFi summit on Wednesday, December 16 in Bangkok, Thailand, CEO and founder Robert Leshner said it was a top priority:
Over time, more real world assets [will be added] as the Ethereum blockchain integrates them.
In the white paper , it is added that it will be a stand-alone blockchain preparing for the rapid adoption and growth of various tokenized assets from new ledgers including ETH 2.0 and central bank digital currencies ( CBDCs ).
CASH will be created through borrowing, similar to the creation of DAI on MakerDAO, and will be used to pay transaction fees. CASH lending, holding, and staking can also earn interest.
The announcement added that the team is actively working on setting up a testnet with a limited feature set, slated for release next quarter (Q1 2021).
The COMP course
Compound’s COMP token , which sparked the DeFi boom , climbed 13% on December 18 along with the entire crypto market. At the end of the day, it was trading for $ 157, posting a drop to its daily opening price of $ 178.
The COMP is up 7% this week. It has already increased by more than 40% in December, as it recovers from a two-month lull. The token is still down 36% from its peak of $ 245 in June.