Lending and borrowing DeFi protocol Compound announced the launch of Compound Chain. This took place a few months later, the platform moved from being a centralized performer to a fully community-governed protocol.
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The introduced research paper explains how the company has developed a blockchain-tagged Compound Chain. It will allow providing money market services over several networks.
Currently Compound faces three major problems on Ethereum: high gas fees, the limit to serve assets on other chains, and risks of hosting any supported asset.
According to the protocol's announcement, the new project will back digital currencies from central banks and investment banks. It will use blockchain interoperability. Before the new system, the protocol only supported trustless and permissionless blockchains.Compound Chain would be governed by COMP, which helped lead the surge in yield farming lately. Still, the chain also presents a new crypto token named CASH. COMP rose by 10% in the past 24 hours on news of the launch.