The pioneering DeFi money market, Compound Finance, released the following third iteration of code called Comet on June 30th.
Jared Flatow, vice president of engineering at Compound Labs, said the protocol was designed to be deployed on all networks compatible with Ethereum virtual machines (EVMs). Comet “forms the foundation of a multi-chain deployment strategy,” he claimed.
Clearing engine
This protocol is designed to promote a single borrowable and interest-earning asset, with all other supported assets acting as collateral. Comet’s risk management and clearing engine has also been redesigned to make the protocol more secure while maintaining incentives for clearers.
“This reduces risk and improves capital efficiency,” Flatow wrote.
On Twitter, Boyan Barakov of Fuji Finance, applause “Each market can be seen as a separate protocol instance with its own collateral and clearing elements,” Comet emphasizes.
“This gives us the flexibility to create a customized money market with different flavors and risk profiles deployed across multiple EVM chains,” says Barakov.
The compound was launched as Ethereum’s first decentralized money market in September 2018, the second version of which was released on Ethereum in May 2019. An unauthorized protocol allows users to earn yields on crypto asset deposits and use the deposits as collateral to support their self-managed loan positions.
According to DeFi Llama, Compound is the ninth largest DeFi protocol, with its total locked value down 78% since May last year to $ 2.7 billion. When S & P evaluated its finances in May, it made a history of cryptography.
Top rivals
The compound has been consistently ranked as the top DeFi protocol by TVL for several years, but the decision to operate exclusively on Ethereum has made it more susceptible to the rising gas prices of the network. In contrast, Compound’s biggest rival, Aave’s TVL, continued to grow throughout 2021 as the protocol enjoyed new deployments in six low-cost Layer 1 and Layer 2 networks.
Aave is the second-ranked DeFi protocol, with $ 5.3 billion locked, down 71% from October’s record high of $ 18.4 billion.
Compound said it has begun planning integration with Comet and has released new code to audit the code and suggest potential improvements to the protocol. Comet uses a Business Source License (BSL). This means that compound governance can grant usage rights to third parties.
Full control
Among other new features, Comet uses Chainlink directly for pricing oracles instead of custom price feeds. Flatow states that “governance has complete control over economic policy,” and the supply and borrowing models can operate independently.
Web3 venture studios Mark Montort and NotCentralized praised Compound for adopting BSL. Monfort talked to The Defiant and emphasized that this license would allow Compound to explore the code without giving up control of the code.
New code
“Under BSL arrangements, non-production use (also known as testing) is usually free. This is important during testing / auditing with users before deploying to the mainnet or other EVM chains.” He said.
The new code has also been well received in the Compound Governance Forum.
Shubiwubi described Comet as a priority for a simple and streamlined user experience. “There is no doubt that this is prospering in a big way, especially in the multi-chain / L2 world,” they said, considering liquidating Aave’s position and moving lending activities to the next stage. I said there is.
“I want to see Compound become multi-chain for a while,” Defiripper added, adding that he hopes Comet will be deployed on the Polygon network.
However, Dakeshi expressed concern about security vulnerabilities associated with deploying cross-chain protocols, noting the recent $ 100 million bridge hack on layer 1 blockchain Harmony.
Verification tool
Going forward, Compound will work with the community to complete audits of the new protocol in the coming weeks. When the audit is complete, the initial release of Comet will be deployed to Ethereum.
The bug has already been found and fixed in the protocol. Certora, a smart contract security company, publishes a blog post highlighting the errors identified by the automated verification tool in Comet. It is a problem related to the user’s collateral, and even if the protocol holds sufficient collateral, the user may be liquidated.
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