Compound v3 “Comet” launched with support for single borrowing model

The third iteration of Compound called “Comet” will support single interest-bearing assets as the lending protocol undergoes a major upgrade.

With the Compound community voting in support of version 3, the lending protocol announced its new features on Aug. 26.

Today, following a successful COMP Governance proposal, Compound III is live 📈3⃣

Compound III is a streamlined version of the protocol, with an emphasis on security, capital efficiency, and user experience.

For borrowers, it’s a game-changing upgrade.https://t.co/lmYs2DThBo

— Compound Labs (@compoundfinance) August 26, 2022

Compound v3 to feature a single borrowing model

Compound has implemented a single-asset borrowing model, an upgrade from the pool-risk model.  The new model allows users to borrow a single interest-earning asset starting with USDC.

Users are allowed to borrow USDC using ETH, wBTC, LINK, and UNI. The deposited collaterals can be withdrawn, but will no longer earn interest.

In addressing changes to the collateral model,  Compound’s Founder Robert Leshner said:

“While you won’t earn interest on collateral anymore, you will be able to borrow more; with less risk of liquidation and lower liquidation penalities; while spending less on gas,’

More control to the community

A key area of focus for Compound was to give more control to the governance community. To improve participation, the governance process will be managed in a single smart contract “Configurator” for each deployment as against having multiple contracts for each proposal.

Compound also transferred exclusive control over all future deployments and adjustments of market parameters in the community.

Compound v3 to control forks

Compound has introduced a business license to its codebase. The aim is to control unauthorized forks as requests to modify or copy the codebase will require governance approval.

An improved experience for users

The Compound v3 interface got a facelift to improve the overall user experience. It redesigned its risk management/liquidation engine to improve usability and increase the safety of funds.

Developers can leverage its improved account management tools to build more decentralized applications (dApps) on the protocol.

Leshner said that the upgrades will make Compound a more effective and capital-efficient lending protocol.

Compound III is an incredible upgrade–designed to be the most effective borrowing tool available.

Safer, more capital efficient, better terms for borrowers, cheaper, quicker, lower-gas.

Tl;dr just watch this clip: https://t.co/lmROiyeUF7

— Robert Leshner (@rleshner) August 26, 2022