Compound [COMP]: Could this upgrade curb the ongoing stagnation
loan protocol, Compound [COMP], seems troubled by the project’s inability to catch up with its peers in the decentralized finance (DeFi) space. This distress could have been a factor that led the cryptocurrency to offer an upgrade for its community.
Compound Labs, the organization behind the cryptocurrency, announced this via its Twitter page. The company said it was releasing a new version of the open-source protocol.
Today, following a successful COMP governance proposal, Compound III is live 📈3⃣
Compound III is a simplified version of the protocol, emphasizing safety, capital efficiency and user experience.
For borrowers, this is a game-changing upgrade.https://t.co/lmYs2DThBo
— Compound Labs (@compoundfinance) August 26, 2022
Don’t panic anymore; we have you
By dissecting the details of the version now available (Compound III or COMPv3), it was observed that users could benefit from it. At the same time, it would cause some losses. Compound Labs called this latest development a “key to security, capital efficiency, and user experience.”
Depending on the draws, COMP v3 will mean that some tokens supported on v2 will no longer be available for borrowing. However, it might seem that the upgrade offers more despite these deletions.
COMP v3 will thus allow users to access single rate loans on more “valuable” assets.
Besides COMP, other crypto assets are included Circle [USDC], Ethereum [ETH], Chain link [LINK], Uniswap [UNI]and Wrapped bitcoin [BTC].
Additionally, the upgrade will allow COMP users to avoid regular liquidations. According to its founder Robert Leshner, Compound III will result in cheaper gas costs and much less liquidation on borrowed assets.
Where does that leave COMP?
For a while, COMP remained almost at the same point as the DeFi Total Value Locked (TVL) ranking. At press time, he remained ninth, according to DeFiLlama.
Its TVL evolution over the last thirty days showed a decrease of 5.54%. Interestingly, this was a moderate decrease from the reductions above. At press time, TVL COMPs the penalty was $2.81 billion, with approximately $995.65 million borrowed.
Despite the upgrade, COMP’s price was far from up. In fact, the coin was down 4.55% from its previous day value at $49.95. Although there was a volume increase of 8.90% according to CoinMarketCap data, COMP price levels remained unimpressive for investors.
Despite the upgrade, COMP’s price was far from up. In fact, the coin was down 4.55% from its previous day value at $49.95.
Although there was a volume increase of 8.90% according to CoinMarketCap data, COMP price levels remained unimpressive for investors.
However, development activity on COM did not jump. This was revealed by on-chain analysis software, Saniment. 24-hour active addresses also followed the trend of development activity.
COMP failing to register a notable advance despite the development, investors within its ecosystem might need to reconsider their options.