A few days ago, I provided some comments to The Defiant on Compounds new upgrade. Check out that article in full here https://thedefiant.io/compound-multi-chain-new-code/
We had some further thoughts about it which we share below.
Good to see Compound Labs release Compound III and the code that will underpin their multi-chain strategy. The approach of having a business source license means that they can allow for growth across those who use the protocol, whilst still having the ability to control it. Better yet for developers because in a BSL arrangement, non-production use (aka testing) is typically free and this is important whilst they are in the midst of testing/auditing with users before deploying to mainnet and across other EVM chains. Additional features such as the use of Chainlink for price feeds (rather than customised ones) lends itself to easier cross-chain functionality and building with “borrowers in mind” will be welcome features for the web3 community.
You can read more about this upgrade here from Compound’s GitHub https://github.com/compound-finance/comet
The focus on creating tailored money markets means we’ll likely see improved flavours of DeFi that cater towards different levels of risk. But, despite this optionality, the overall crypto space is going through a state of re-education of what’s good and bad, how decentralised things really are and aren’t and what can and cannot be trusted. . Options are great but many users want nothing more than “line go up” so anything in the blockchain space faces an uphill battle. It’s just that some of them are better equipped for that battle.
It may take some time for Compound to realise growth potential from this new franchise type model but if franchises can work for folks like McDonald’s, then why not here.
Further reading
Compound announcement - https://www.comp.xyz/t/compound-iii/3351
@BoyanBarakov views on this upgrade
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