Compound Labs has announced the first smart contract implementations for Compound III, which will create a USDC market on Ethereum.
Contracts are pending activation by Compound Governance but are now open for community review.
- According to Compound’s latest update protocol development logthe implementation takes Compound III “just a governance proposal away from being live”.
- One of the smart contracts involved is a “configurator”, which will allow Compound to set and update the parameters of a Comet proxy contract. Comet is another name for Compound III, the new multi-chain strategy of the DeFi lending protocol for implementation on all EVM compatible networks.
- “This model enables significant gas savings for protocol users by ‘constant’ protocol parameters,” said Kevin Cheng, senior software engineer at Compound Labs, in the update.
- Cheng has provided the parameters of the incoming protocol, which will allow users to provide WETH, WBTC, LINK, UNI and COMP as collateral to borrow USDC. Each comes with customized loan and settlement rates, with WETH and WBTC having slightly lower settlement fees.
- The USDC market will aim for a USDC 5 million reserve pool and will present a minimum loan of USDC 100.
- USDC’s role in DeFi has been questioned since its issuer, Circle, froze stablecoins within Tornado Cash wallets in response to OFAC’s requests. MakerDAO also has considered dumped its $ 3.5 billion USDC reserves for ETH to support its decentralized stablecoin, DAI.
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