Compound Labs, the team behind the decentralized finance (DeFi) lending protocol Compound, released code for a multi-chain lending protocol dubbed Compound III on Tuesday.
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Compound III is intended to be a governable protocol that’s both affordable in capital and transaction fees. One way it’s doing this is by including a single borrowable base asset — with all other assets collateralized — to reduce risk and improve capital efficiency, Compound Labs’ vice president of engineering Jared Flatow wrote in a Wednesday post.
While Compound has released the code to the multi-chain lending protocol, it hasn’t released the actual protocol itself. Still, the released code marks a major step in making cross-chain decentralized lending a reality on Ethereum virtual machine-compatible (EVM) chains.
“Developers can begin planning integrations with Compound III, and auditing or suggesting improvements to the codebase,” wrote Flatow in the post.
The Compound protocol currently has $3.5 billion in assets accruing interest over 18 markets, according to its website.
© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
MK Manoylov is a reporter for The Block covering NFTs, blockchain-based gaming and cybercrime. MK holds a graduate degree from New York University’s Science, Health, and Environmental Reporting Program (SHERP).
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