a third iteration of compound A major upgrade to the lending protocol will support a single interest-bearing asset called ‘comet’.
Today, after a successful COMP Governance Proposal, Compound III went public 📈3⃣
Compound III is a streamlined version of the protocol with a focus on security, capital efficiency and user experience.
For renters, this is a breakthrough upgrade.https://t.co/lmYs2DThBo
— Compound Labs (@compoundfinance) August 26, 2022
Composite v3 featuring a single borrowing model
Compound has implemented a single asset borrowing model, an upgrade from the pooled risk model. The new model allows users to borrow a single interest-bearing asset starting with her USDC.
Users can borrow USDC using ETH, wBTC, LINK, and UNI. Deposited collateral can be withdrawn, but does not accrue interest.
Compound founder Robert Lechner said of the changes to the collateral model:
“You don’t get interest on collateral anymore, but you can borrow more. Low risk of liquidation and low liquidation penalties. While saving on gas.”
More control over your community
A key focus area for Compound was to give more control to the governance community. To improve participation, the governance process is governed by one smart contract “configurator” per deployment, rather than having multiple contracts per proposal.
Compound has also transferred exclusive control over all future developments within the community and adjustments to market parameters.
Compound v3 controlling the forks
the compound is business license to that codebase. The purpose is to control unauthorized forks, as any request to modify or copy the codebase requires governance approval.
Improved user experience
The Compound v3 interface Revamped for better overall user experience. We have redesigned the risk management/clearing engine to improve usability and increase the safety of your funds.
Developers can leverage improved account management tools to build more decentralized applications (dApps) on the protocol.
Leshner said the upgrade will make Compound a more effective and capital efficient lending protocol.
Compound III is an incredible upgrade, designed to be the most effective borrowing tool available.
Safer, more capital efficient, better terms for borrowers, cheaper, faster, lower gas.
Tl;dr Watch this clip: https://t.co/lmROiye UF7
— Robert Leshner (@rleshner) August 26, 2022