Popular money market protocol Compound announced its plans for further growth, announcing that the new Compound Chain will be launched soon.
Compound Chain appears to be an explicit permit center for cross-chain lending and borrowing of digital assets. There are already plans to build integrations with some commonly used layer-1 chains and scaling solutions such as Polkadot, Solana, Optimism, and more.
The team behind Compound called this new chain a “re-imagination” of the original lending protocol that would connect existing users on Ethereum on DeFi with markets operating on permit ledgers. This new independent chain will also be accompanied by a new token called CASH. The new token will be used to pay all transaction fees and will also charge holders a compound interest rate.
This new chain uses a more centralized consensus mechanism and has received mixed feedback from the DeFi community so far. The management of this new chain will eventually be in the hands of COMP token holders in the Ethereum main chain.
This new chain will be launched within the next year.
Popular DeFi accounts focusing on research and analysis pointed out that Compound may be on its way to becoming the leading DeFi protocol for corporate assets.
This theory is in line with some of the other partnerships with Compound and DeFi accessibility providers like Fireblocks that we heard about in the news earlier this year. Together, they launched their first corporate crypto savings account in March.
At the time of writing, Compound (Comp) is trading at $ 160.