DeFi protocol Compound says multi-chain Comet upgrade is ready to go

Decentralized finance (DeFi) lending protocol Compound is getting ready to launch its third version called Comet, the project stated on Tuesday.

Compound is a DeFi protocol that lets anyone lend or borrow funds, having put up crypto as collateral. It currently runs on Ethereum but Comet or Compound III will mark its transition to becoming a multi-chain protocol. Aave — Compound’s main rival in the DeFi money market — also went multi-chain with its third iteration, called Aave v3, in March.

Commenting on the project’s DAO forum, senior software engineer at Compound Labs Kevin Cheng stated that Compound III’s first deployment will be a usd coin (USDC) market on Ethereum. Once launched, the USDC market on Comet will support five different cryptocurrencies that can be used as collateral. These are wrapped ether, wrapped bitcoin, uniswap, chainlink, and Compound’s native coin (COMP).

According to Cheng, all the release candidate contracts for the first Comet deployment have been deployed. Release candidate contracts are final versions of blockchain protocol smart contracts that are ready for live deployment. Cheng also stated that the contracts have been audited by the likes of OpenZeppelin and ChainSecurity.

With the contracts ready, the responsibility for launching Comet now rests with the project’s community. “Compound III is now just a governance proposal away from being live,” wrote Cheng on the DAO’s forum.

The typical procedure here will begin with a governance proposal to launch Comet. The DAO will then debate the launch, followed by an on-chain vote. Comet will go live once the DAO votes to approve its final deployment.

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