Compound Finance has released a new Compound Chain project — “a distributed ledger capable of transferring value & liquidity between peer ledgers.”
The team is currently building a testnet implementation, which is expected to be released in the next quarter. The project will also be bringing other popular DeFi projects like Polkadot, Solana, Quorum, and Celo into the protocol.
Designed to complement the Ethereum contracts, it would be controlled by COMP governance and extend DeFi network effects.
COMP, the $694 million digital asset, is currently trading at $158, up 40.4% in the past 30 days but down 36% YTD. The white paper reads,
“The Compound Chain is designed from the ground up to enable bridging value between its connected ‘peer’ chains.”
The Compound Chain will have CASH as its native unit of account, created through borrowing, much like MakerDAO’s DAI. CASH will be borrowable against any supported asset as collateral.
This CASH unit will be used to pay traction fees on the Chain, and interest would be paid to the CASH holders.
The value of one CASH is set at one US dollar, but through governance, it would later begin to track an alternate index, such as a basket of currencies.