Compound Deploys USDC Lending Market

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

The contracts are pending an activation by the Compound (COMP) administration but are now open for public review.

According to the latest update from the development log, the implementation of the USDC lending marketplace is the first product of Compound III, which has just been launched by the platform to expand into multi-chain lending, rolling out on all Ethereum Virtual Machine (EVM) compatible networks, launching in late June 2022.

One of the highlights of this smart contract is that it will allow the project to set and update the parameters of the Comet authorization contract. Comet is another name for Compound III. Kevin Cheng, the Senior Software Engineer at Compound Labs, explains that Comet will significantly save gas for users by not changing the parameters of the protocol.

Cheng provided the parameters of the upcoming protocol, allowing users to provide WETH, WBTC, LINK, UNI, and COMP as collateral to borrow USDC. Each comes with the custom loan and liquidation rates, with WETH and WBTC having slightly lower liquidation fees. The USDC marketplace will target a reserve fund of 5 million USDC and have a minimum loan size of 100 USDC.

Although USDC’s market share has decreased compared to USDT recently, in terms of DeFi, this stablecoin is still a potential candidate when combined with Ethereum’s layer-2 protocols.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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