Compound Labs, the team behind the decentralized finance (DeFi) lending protocol Compound, released code for a multi-chain lending protocol dubbed Compound III on Tuesday.
Compound III is intended to be a governable protocol that’s both affordable in capital and transaction fees. One way it’s doing this is by including a single borrowable base asset — with all other assets collateralized — to reduce risk and improve capital efficiency, Compound Labs’ vice president of engineering Jared Flatow wrotete in a Wednesday post.
While Compound has released the code to the multi-chain lending protocol, it hasn’t released the actual protocol itself. Still, the released code marks a major step in making cross-chain decentralized lending a reality on Ethereum virtual machine-compatible (EVM) chains.
“Developers can begin planning integrations with Compound III, and auditing or suggesting improvements to the codebase,” wrote Flatow in the post.
The Compound protocol currently has $3.5 billion in assets accruing interest over 18 markets, according to its website.