Web3: Compound III launches for borrowing USDC; MakerDAO $100M DAI Loan back by real world assets; Coinbase moving from brokerage to subscription
Gm Fintech Futurists —
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DeFi Protocols and Digital Assets
With Compound III Launch, DeFi Pioneer Emphasizes Security - Blockworks
Decentralized lending protocol Compound has launched a new version, Compound III, after the governance proposal to initialize Compound III received 100% approval. Compound, launched in September 2018, allowed lenders to earn interest on deposited funds, and borrowers to take out loans against their crypto assets. Check out our interview with Robert Leshner here.
Compound II introduced liquid tokenized collateral (cTokens) to the protocol. The first two versions of the protocol had a pooled risk model, which supports rehypothecation — a lender can use an asset, supplied as collateral on a debt by a borrower, and apply its value to cover obligations. In Compound III, the cToken model is no longer used. Compound III deployments feature a single borrowable (interest earning) base asset (USDC in this case). All other assets, such as ETH, WBTC, LINK, UNI, and COMP, are collateral. This is likely to reduce available leverage, and looks less like margin borrowing and more like a USDC version of Maker.
DeFi has been strong in innovating around lending models, and is more resilient than the centralized versions thereof given algorithmic rules and clear onchain data. As an example, Nexo allow users to borrow using collateral, but has credit credit terms that state: “Nexo acquires the ownership title and all attendant rights of ownership of the Collateral while the Nexo Crypto Credit is outstanding, and can dispose of this Collateral in any manner at its sole and absolute discretion." Let’s not bring up 3AC, Voyager, and Celsius.
Synthetix Looks To Turn Off The SNX Money Printer Once And For All - Cointelegraph
The Merge May Negatively Impact DeFi Protocols, Stablecoins: Report - CoinDesk
What a Rising Dollar Means For Stablecoin Adoption - Blockworks