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DeFi lending protocol Compound introduces Comet as their third version of lending protocol

On August 16, the DeFi lending protocol Compound announced the launch of Comet, the third version borrowing protocol, via its tweet.

The DeFi lending protocol, Compound, allows users to borrow or lend funds by putting their cryptos as collateral. At present, Compound runs on Ethereum, but with the launch of Compound lll, its motive is to become a multi-chain protocol.

Aave, the main competitor of Compound, has already moved to a multi-chain ecosystem in March with the third iteration called v3.

According to Kevin Cheng, senior software engineer at Compound Labs, the first deployment of Compound’s ll will be the USDC market on Ethereum, which will be activated by Compound governance.

After the launch of Compound, five different cryptocurrencies can be used as collateral, and these are: Uniswap, wrapped ether, Chainlink, wrapped bitcoin, and Compound’s native coin (COMP).

As per Cheng, the first comet deployment of all the release candidate contracts has been deployed. Release candidate contracts are the final blockchain contracts that are prepared for live deployment. As said by Cheng, the contracts have been evaluated by the likes of ChainSecurity and OpenZeppelin.

Since the contract is ready, the responsibility for launching the Compound lll relies on the project’s community. Cheng wrote on DAO’s forum, “Compound lll is now just a governance proposal away from being live.”

The procedure for launching the comet will first start with a governance proposal. After the proposal, the DAO will debate the launch and then start an on-chain vote. Once the DAO votes to approve the final deployment, the comet will go live.

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