Compound

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Aug 302022

Compound levels up

Crypto lending platform Compound seeks market dominance with its new improved version of the protocol catching eyes.

  • Popular DeFi lending platform Compound launched ‘Comet’ on Friday – an improved and ‘streamlined’ version of the protocol. The DAO has described the release as a “game changing upgrade” that will improve “security, capital efficiency and user experience”. DeFi Llama reports Compound’s current total value locked to be $2.71bn.
  • The most significant change is improved risk management, as well as a restructuring to the underlying protocol structure. Instead of a network of multiple smart contracts, the platform now functions using a single smart contract which configures subsidiary contracts.
  • The launch didn’t do much good for its COMP token which fell by over 10% on Friday, but did manage to pop back up by more than 12% on Monday. What should’ve been some positive price action for the platform prolly had the wind taken out of its sails by the ~10% drop in the wider crypto market over the weekend.
Justin W / Unsplash

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May 102022

DeFi gets a B-

While a test score of B- defo doesn’t put crypto at the top of the class, Compound reckons its S&P grade is a first for DeFi.

  • DeFi platform Compound received a… sub-par grade of B- in its S&P Global Rating. Compound was just happy to get its name on the board, welcoming the recognition from one of the biggest credit rating agencies out there.
  • The USDC issuer has the “capacity” to meet financial commitments, at least according to the S&P. You’d kinda hope so, given that USDC is currently the fifth-largest cryptocurrency in terms of market capitalization. And stablecoins aren’t getting a particularly good rep either atm.
  • COMP was down 18% on Monday, falling with the rest of the market as Bitcoin figures out which way it wants to go. S&P listed its reasoning for the poor score, citing Compound’s low capital base, the potential for broad regulation of cryptocurrencies, and the hurdles Compound may face in its 4% USDC yield returns.
Hulki Okan Tabak / Unsplash