Compound v3 “Comet” Launched With Support – Single Borrowing Model

Compound v3 “Comet” was launched with massive support for a single borrowing model. It is currently undergoing a substantial update, which is the third version of Compound.

The lending protocol unveiled its new capabilities on August 26 after the Compound community voted in favor of version 3.

Today, following a successful COMP Governance proposal, Compound III is live 📈3⃣

Compound III is a streamlined version of the protocol, with an emphasis on security, capital efficiency, and user experience.

For borrowers, it’s a game-changing upgrade.https://t.co/lmYs2DThBo

— Compound Labs (@compoundfinance) August 26, 2022

Compound v3 Will Feature A Single Borrowing System

Compound v3 “Comet” was launched with massive support for a single borrowing model i.e. Compound has upgraded its pool-risk borrowing model to a single-asset borrowing strategy. Users can borrow a single interest-earning asset starting with USDC under the new approach.

Users can borrow USDC with ETH, wBTC, LINK, and UNI. The deposited collaterals can be removed, but no interest will be earned.

Compound’s Founder Robert Leshner stated in response to changes to the collateral model:

“While you won’t earn interest on collateral anymore, you will be able to borrow more; with less risk of liquidation and lower liquidation penalties; while spending less on gas,’

More Control Goes To The Community

Compound’s main goal was to provide the governing community more power. To increase involvement, the governance process will be governed by a single smart contract called a “Configurator” for each deployment, rather than many contracts for each request.

Compound also gave up sole control over any future deployments and market parameter revisions in the community.

Compound v3 Will Control Forks

Compound’s codebase now includes a commercial license. The goal is to control illegal forks by requiring governance permission for requests to alter or copy the software.

Improved User Experience

To improve the overall user experience, the Compound v3 interface was updated. It revamped its risk management/liquidation engine to boost usability and fund security.

Developers may use the protocol’s enhanced account management facilities to create additional decentralized apps (dApps).

According to Leshner, the enhancements will make Compound a more successful and capital-efficient lending strategy.

Compound III is an incredible upgrade–designed to be the most effective borrowing tool available.

Safer, more capital efficient, better terms for borrowers, cheaper, quicker, lower-gas.

Tl;dr just watch this clip: https://t.co/lmROiyeUF7

— Robert Leshner (@rleshner) August 26, 2022

Compound Overview

Compound is an open-source interest rate protocol that allows developers to create new financial applications. Its protocol is a widely used Ethereum-based system with thousands of users and dozens of apps that integrate Compound. Compound provides a web interface for adjusting money market interest rates depending on asset supply and demand.

Compound was established in August 2017 and is based in San Francisco, California. It was founded bu Geoffrey Hayes and Robert Leshner.

The company is also known as Compound Labs and Compound Crypto.

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