Major DeFi protocol aggregator launches new upgrade

  • The release is the result of a successful referee proposal.
  • As of now, customers may only withdraw their warranties.

To simplify the process of borrowing and lending cryptocurrency, complexThe pioneering DeFi protocol has released a new “simplified” version of the protocol dubbed Comet. The release is the result of a successful governance proposal, and the new version of the protocol is being hailed as a “game-changing upgrade” for debtors in the DeFi marketplace.

Robert Lechner, founder of the compound stated:

“Compound III is a simplified version of the protocol, focusing on security, capital efficiency and user experience. Complexity has not been added – removed. What remains is the most effective tool for DeFi borrowers.”

strong borrowing model

There are a number of improvements to the protocol in its most recent iteration, but the most significant change is the adoption of a new borrowing model that allows the creation of a single interest-bearing asset that can be borrowed against the guarantee of all other asset-backed services.

Previous versions of the consolidation approach included combining collateral with other forms of collateral. For example, if someone took out a loan in USDC in exchange for Ethereum, the Ethereum users might be merging with the Ethereum of other borrowers. However, as of now, customers may only withdraw their warranties.

According to the initial suggestion written by Jared Flatow, Compound Labs’ vice president of engineering, this method “protects borrowers from premature liquidation, and can improve risk management” because there are two distinct types of collateral variables involved: those for borrowing and those for liquidation.

Users of Ethereum (ETH), Encapsulated Bitcoin (wBTC), and . native tokens chaIlink (LINK), Uniswap (UNI), and Compound (COMP) will be able to borrow the USDC stablecoin in the initial deployment of Compound v3, with Chainlink Oracle providing the only pricing feed for the protocol.

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