Compound version 3.0, codenamed “Comet,” was released with extensive support for a single borrowing model. The current version, which is the third iteration of Compound, is going through a significant overhaul right now.
After the members of the Compound community voted in favor of version 3, the loan protocol presented its newly implemented capabilities on August 26. Compound v3 will only have one borrowing system to choose from.
Compound has upgraded its pool-risk borrowing model to a single-asset borrowing strategy. Compound v3 “Comet” was launched with enormous support for a single borrowing model. i.e. Compound has added massive support for a single borrowing model. Under the new strategy, users will have the ability to borrow a single interest-earning asset beginning with USDC.
The following cryptocurrencies can be used to borrow USDC: ETH, wBTC, LINK, and UNI. It is possible to delete the collaterals that were deposited, but no interest will be generated on them.
Robert Leshner, the founder of Compound, issued the following statement in reaction to modifications made to the collateral model:
The community will take on a greater degree of control.
The primary purpose of Compound was to endow the governing community with a greater degree of authority. Instead of having several separate contracts for each request, the governance process will be managed by a single smart contract referred to as a “Configurator” for each deployment. This will be done in order to promote participation.
Additionally, Compound gave up its sole control over any future deployments and market parameter adjustments that may occur within the community.
Will Control Forks for the Compound v3
The codebase for Compound has been updated to incorporate a commercial license. The requirement of governance authority for requests to update or copy the software is intended to accomplish the task of preventing unlawful forks.
Enhanced Quality of Life for the User
The Compound v3 user interface has been modernized in order to enhance the user experience as a whole. In order to improve both use and the safety of funds, it redesigned its risk management and liquidation engine.
Additional decentralized applications may be developed by developers with the use of the protocol’s improved account management capabilities (dApps).
Compound is going to become a more profitable and capital-efficient lending strategy as a result of the enhancements, according to Leshner.
Overview of the Compound
Compound is a protocol for calculating interest rates that is open-source and enables developers to build new financial applications. Compound is integrated into dozens of apps and has thousands of users thanks to its protocol, which is based on Ethereum and is extensively utilized. Compound offers a web-based interface for modifying interest rates on the money market in response to changes in the supply and demand of assets.
Compound is a company that began operations in August of 2017 and has its headquarters in San Francisco, California. Geoffrey Hayes and Robert Leshner were the ones who initially conceptualized the idea.
Compound Labs and Compound Crypto are are names that have been used to refer to this business.