Compound III marks Compound’s transition to a multichain DeFi protocol. Compound’s third version is due to be launched soon. Compound, a decentralized finance (DeFi), lending protocol, is about to launch its third edition called Comet. The project was on Tuesday.
Compound is a DeFi protocol which allows anyone to lend or borrow money, provided they have crypto collateral. Compound runs on Ethereum, but Comet or Compound III mark the transition to a multi-chain protocol. Aave, the main competitor in DeFi’s money market — also became multi-chain in March with its third iteration called Aave v3.
Compound Labs senior software engineer Kevin Cheng commented on the project’s DAO forum. Cheng stated Compound III’s initial deployment will be a USDC market on Ethereum. The USDC market on Comet, which will be available once it is launched, will allow five different cryptocurrencies to be used as collateral. These include wrapped ether and wrapped bitcoin as well as uniswap and chainlink.
Cheng stated that all release candidate contracts for Comet’s first deployment have been deployed. The release candidate contracts are the final versions of blockchain protocol smart contract that are ready to be deployed. Cheng stated that the contracts were audited by ChainSecurity and OpenZeppelin.
Now that the contracts are in place, Comet’s launch is now the responsibility of the community. Cheng wrote on the DAO’s forum that “Compound III” is just a governance proposal away.
Here, the typical procedure will start with a governance proposal for Comet. After the DAO debates the launch, there will be an on-chain vote. Once the DAO votes in favor of Comet’s final deployment, Comet will be made live.
