Compound (COMP) prepares to create new cross-chain protocol
- Compound Chain allows users to lend or borrow assets through blockchains such as Tezos and Polkadot.
- The blockchain will use its native token known as CASH for payment of transaction fees.
- Compound Chain will speed up quick adoption and growth of digital assets.
Compound Labs released a white paper providing details of its plans to launch an application-specific blockchain known as Compound Chain. According to the white paper, Compound Chain provides money market services through a wide range of networks.
Robert Leshner, Compound founder, revealed that the firm wants a blockchain that will provide the right framework for Compound (COMP).
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“We want to announce the designs for a blockchain that can scale Compound over the next century,” he said, adding that there is no timeline for that to happen but it’s ready for a testnet now.
Limitations with Compound in Ethereum
The new white paper was prepared by Leshner and lab staffers Max Wolff, Jared Flatow, and Geoffrey Hayes. They also mentioned three problems of the present Compound on Ethereum (ETH), which includes all supported assets sharing the risk of each supported asset, failure to serve assets on other chains, and the high cost of gas. As a result of these issues, the team hopes that the new tool could bring more assets into the compound from different ledgers.
The team behind money market protocol Compound has released a white paper detailing Compound Chain, a new tool they say could bring more assets into the protocol from numerous ledgers.
Based on the announcement, Compound Chain was described as “a distributed ledger capable of transferring value and liquidity between peer ledgers.”
The Blockchain uses CASH as its token
The blockchain will also use is a native token which is called CASH, and valuable for the payment of transaction fees. The whitepaper also revealed that Compound Chain will not be limited as a stand-alone distributed ledger. It will solve issues and proactively prepare for the quick adoption and growth of digital assets.