Compound has announced the launch of “Compound III,” a new “streamlined” version of its protocol. Compound (COMP), a decentralized lending protocol, is retreating from a pooled-risk model where users could borrow any asset, revealed Compound Finance founder Robert Leshner in a new blog post.
In the blog post, Leshner elaborates that collateral is always rehypothecated in the pooled-risk model. All assets from the protocol could be drained from a single bad asset (or oracle update).
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 handy when users are aware of assets to be borrowed ahead of time hence the capital efficiency increases too.
COMP Decreases 9% in the Past 24 hours
Compound will become quick, safe, more capital efficient and also inexpensive following the upgrade, shares founder. The first deployment of Compound III will allow users to borrow USD Coin (USDC) with COMP, Chainlink (LINK), Wrapped Bitcoin (WBTC),Ethereum (ETH) and Uniswap (UNI) as collateral.
At the time of writing, the COMP was trading at $46.81, a 9% decline in the past 24 hours. COMP, the 122nd-ranked crypto asset in terms of market cap is still 95% away from its all-time high of $910.54 in May 2021.
Meanwhile, after losing $80 billion yesterday, the overall crypto market cap continues to be below $1 trillion. The top cryptocurrency Bitcoin continues to be below $20,000. Its largest fluctuation came on August 25 when it attempted to reclaim $22,000 but failed miserably. The altcoins on the other hand have also suffered in the past week. Though they seem to be calm now. The price of Ethereum, the top altcoin, as of this writing, stood at $1,488, a 0.94% rise in the past 24 hours.
Source: https://www.thecoinrepublic.com/2022/08/29/lending-platform-compound-comp-launches-new-streamlined-protocol-compound-iii/