Comet is the third version of the decentralized lending protocol Compound Finance, which is intended to take the protocol beyond the Ethereum mainnet.
Compound is set to become a multi-chain protocol thanks to its new Comet release, the third version of the blockchain protocol. And so far, Compound Finance, the third decentralized lending protocol and the ninth largest by liquidity in the DeFi ecosystem, operates only on the Ethereum blockchain. However, its developers have been working on a new version to take the powerful smart contracts of this protocol outside this network, thereby making Compound a multi-chain decentralized protocol.
The new version, called Comet, the third of the DeFi protocol, was presented as a governance proposal last June. The proposal, published by Jared Flatow, Compound Labs' vice president of engineering, outlined a multi-chain strategy focused on the implementation of Compound Finance on other blockchains compatible with the Ethereum Virtual Machine (EVM). In addition to this, the proposal also pointed to optimizing capital efficiency, gas costs, and protocol security.
Now, its developers have announced that contracts for the third version of this DeFi protocol, Comet, are ready to be deployed and tested on any EVM-compatible network, taking Compound Finance an important step towards blockchain interoperability.
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First deployment of Comet version begins
This week, Compound Finance developers reported on Twitter the deployment of the first Comet candidate contracts for the creation of a USDC market on the Ethereum network.
“Contracts are on the mainnet and can be activated (only) by Compound governance”, the developers indicated.
Commenting on this first deployment, Compound Labs senior software engineer Kevin Cheng commented that the protocol development team has put considerable effort into recent weeks to review Comet implementations on the testnet, as well as the codebase and documentation.
In addition to this, Cheng also indicated that these candidate contracts for Comet were audited by OpenZeppelin and ChainSecurity and run by the protocol community, which controls the market contracts and can activate them through governance. That is, the community must submit a governance proposal and vote on it to decide on the official deployment of Comet.
Which chains could Compound Finance be implemented on?
On GitHub, the developers indicated that Compound could be deployed on EVM-compatible blockchains such as Avalanche, as well as others such as Cronos, ICE (developed by ICON Network), and layer-2 solutions Polygon Network and Arbitrum One.
In this way, Compound would begin to be officially available on these networks, reaching the millions of users who make use of them, especially Polygon and Avalanche, which have grown significantly in recent years thanks to being EVM-compatible networks with low commissions, high speed and scalability.
Compound's liquidity exceeds $3.000 billion
At the time of writing, Compound Finance's liquidity exceeds 3.003 million, according to the DeFi platform Llama. According to this data, in the last 30 days, the liquidity deposited in Compound smart contracts has increased by 10,4%.
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