- Compound entered Institutional Lending Sector and Launched its Compound Treasury.
Compound is a decentralized peer-to-peer lending protocol that recently extended its loans to users and financial institutions who deposit their assets as security.
Vice President of GM Compound Reid Cuming highlighted that recognized banks could carry off “USD or USDC” with a fixed rate starting from 6% APR.
Cuming underlined, “Borrowing offers an open-ended term and no repayment schedule, providing our clients the flexibility to draw liquidity and repay balances as they see fit – for as long as they remain overcollateralized.”
An investor expressed his opinion that a 6% fixed interest rate is exponentially more significant than traditional finance offers.
Per the statement, the loan will not be fixed and entirely depend on the smart contract. If an institution takes out a compound treasury loan, it will remain in control of its assets unless they default on loans.
Cuming further noted that “Compound Treasury can now address the demand for liquidity with a simple, reliable borrowing solution while continuing to provide the same trusted service we’ve delivered to clients earning interest over the past year. Introducing borrowing expands our cash management product to meet more needs of our clients.”
Earlier in August 2022, Compound announced the launch of “Compound III,” a new “streamlined” version of its protocol.
A single borrowable asset is featured on every deployment of Compound III. It remains the property of users when they supply collateral. Except during liquidation, other users can’t withdraw. The collateral comes in handy when users know assets to be borrowed ahead of time; hence the capital efficiency increases too.
As per data from CoinMarketCap, While writing this article, the token of Compound (COMP) is trading at $53.66 with a market cap of $389,967,238.
In the last 30 days, the COMP token was highest traded at the value of $61.67 on September 14, 2022, and the token was lowest traded on August 29, 2022, with a trading price of $43.77.
Source: https://www.thecoinrepublic.com/2022/09/16/compound-treasury-entered-in-institutional-lending-service-sector/