Compound Developers Will Launch A New Protocol For Interaction With Various Blockchains

The development team of the popular decentralized finance project Compound is working on a new tool, Compound Chain, which will allow the protocol to attract assets from other blockchains.

A compound chain will enable the movement of assets and liquidity between different blockchains participants. Users of various networks will have access to lending on other blockchains. Users will be able to provide funds on one network to use the service of another network. For example, a user on the Solana blockchain will get a loan in tokens stored on the Polkadot network.

Our team is actively working on a test network Compound Chain with a limited set of features. the launch is scheduled for next quarter, and documentation for developers and validators will appear in the coming weeks. Together we will reinvent finance!

Compound labs shared on Twitter:

Our team is actively building a testnet implementation with a limited feature set, which we expect to release next quarter.

Documentation for developers & validators will be available in the coming weeks.

Together, we’ll reinvent finance 📈

– Compound Labs (@compoundfinance) December 17, 2020

A new token, CASH, will be introduced, which will be used to pay transaction fees. The network will be managed by the existing structure of Compound Governance using COMP tokens on Ethereum. According to the Defi Pulse portal, the Compound protocol keeps the third position in deposited assets’ volume. At the moment, the project has assets worth $1.82 billion.

At the end of November 2020, positions worth $89 million were liquidated in the Compound protocol due to the Coinbase price oracle’s failure for the DAI token.

Originally published at https://thecryptobasic.com on December 19, 2020.

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