DeFi platform Compound, the heart of yield farming, announced plans to create a new blockchain network, Compound Chain, focused on providing decentralized financial services within various networks, including central bank CBDCs.
Although it is still a project under construction, which is in its testing phase, Compound ChainThe new blockchain The Compound Finance protocol, and its evolution, is developing as a solution to provide money market services across multiple networks.
Compound developers recently published what would be the first version of the whitepaper of Compound Chain, explaining that the new chain would be like "a distributed ledger capable of transferring value and liquidity between ledgers» which will use its own token called CASH, although the governance of the protocol will continue to be exercised through the platform's well-known token, COMP. In this way, CASH will be the token that users of the platform will use to pay commission fees for the different transactions that take place between the different blockchains.
Compound Chain testnets will be launched in early 2021, the developers said, although the team does not yet have a set date for the launch of the mainnet.
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Compound Chain, a blockchain for CBDC and ETH2
Compound is a decentralized application (dapper) designed on the blockchain of Ethereum, to offer liquidity earnings and other decentralized financial services to users, who can borrow in cryptocurrencies such as Ether (ETH), 0x (ZRK), DAI (DAI), Basic Attention Token (BAT), and Augur (REP). However, despite the success of this platform, and the importance that its services have acquired within DeFi ecosystems, Compund developers point out that the current protocol has high Gas costs and the inability to serve assets on other blockchains, in addition to the fact that all the assets that are supported add the risk of each asset in the protocol.
Therefore, developers are developing Compound Chain as a viable solution to overcome all the current limitations present in Compound Finance, and guarantee users more effective and efficient services.
According to the whitepaper submitted by the developers, the new blockchain will not only allow for assets compatible with permissionless and trustless blockchains, but also plans to support all kinds of assets, including those of the future, that are compatible with multiple blockchain networks. Thus, the new network will allow the protocol to even integrate new digital assets developed by central banks, the well-known CBDC, as well as assets of the future, including ETH2. The only requirement, so far, is that blockchains that want to integrate into Compound Chain support smart contracts (smart contracts).
Interoperability between blockchain networks
Compound Chain will operate as a cross-chain, where users will be able to borrow against their assets or against assets loaded into the protocol. The developers also indicate that even Compound-exclusive tokens, such as the CASH token, will be able to be borrowed.
robert leshner, founder of Compound, noted during a telephone interview that Compound Chain will be ready to receive the long list of Ethereum tokens, and that the rest of the blockchains that are integrated into the new protocol will depend on the community itself, although he pointed to the networks of Solana y Polkadot y tezos as the possible next members of Compound Chain after Ethereum.
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