Home Markets Compound Labs Deploys Smart Contracts for USDC Market on Ethereum

Compound Labs Deploys Smart Contracts for USDC Market on Ethereum

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Compound Labs Deploys Smart Contracts for USDC Market on Ethereum

Compound Labs has announced the first smart contract deployments for Compound III, which will create a USDC marketplace on Ethereum.

Contracts are awaiting activation by Compound Governance, but are now open for community review.

  • According to Compound’s latest update protocol development logthe rollout brings Compound III “just a far-from-live governance proposal.”
  • One of the smart contracts involved is a “configurator”, which will allow Compound to set and update the parameters of a Comet proxy contract. Comet is another name for Compound III – the new DeFi lending protocol multi-chain strategy for deployment on all EVM-enabled networks.
  • “This model provides significant gas savings for users of the protocol by ‘constantizing’ protocol parameters,” Kevin Cheng – senior software engineer at Compound Labs – explained in the update.
  • Cheng provided the parameters for the upcoming protocol, which will allow users to provide WETH, WBTC, LINK, UNI, and COMP as collateral to borrow USDC. Each comes with custom borrow and liquidation rates, with WETH and WBTC featuring slightly lower liquidation fees.
  • The USDC market will target a reserve pool of 5 million USDC and will have a minimum loan size of 100 USDC.
  • USDC’s role in DeFi has come into question since its issuer – Circle – froze stablecoins inside Tornado Cash wallets in response to OFAC requests. MakerDAO even has considered draining its $3.5 billion USDC reserves for ETH to back its decentralized stablecoin, DAI.
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