Decentralized finance (DeFi) loan protocol Compound is preparing for the launch of its 3rd version dubbed Comet the company said that on the Tuesday.
Compound is an DeFi protocol that allows anyone to lend or borrow money with cryptocurrency as collateral. It is currently running on Ethereum however Comet or Compound III will be the first to transition into a multi-chain platform.
Aave is Compound’s primary rival in the DeFi market was made multi-chain with its third version known as Aave v3 which was released in March. In a post on the development’s DAO forums Senior software engineer from Compound Labs Kevin Cheng said Compound III’s debut implementation will be a usd coin (USDC) market that will be based on Ethereum.
When it is launched it will be a USDC market will be available on Comet will be able to support five currencies which can be utilized as collateral.
They include wrapped ether, wrap bitcoin, uniswap chainlink, and Compound’s own native cryptocurrency (COMP). According to Cheng Cheng, all releases candidate contracts for the initial Comet deployment have been put into use. The release candidate contracts represent the last version of the blockchain protocol’s smart contracts that are now ready to be deployed live. Cheng said that the contracts were scrutinized by companies like OpenZeppelin as well as ChainSecurity.
After the contracts have been signed, the responsibility of the launch of Comet will now be the community of the project.
“Compound III is now just a governance proposal away from being live,”
wrote Cheng on the forum of the DAO. The normal procedure for this begins with a governance plan for the launch of Comet.
A DAO will then consider the launch, which will be followed by an online vote. Comet which is the name of compound Upgrade will go live after the DAO decides to approve the final deployment.
