{"id":453327,"date":"2020-12-30T11:27:28","date_gmt":"2020-12-30T11:27:28","guid":{"rendered":"https:\/\/uniquehot.com\/?p=453327"},"modified":"2024-06-11T12:46:37","modified_gmt":"2024-06-11T12:46:37","slug":"compound-comp-outruns-top-defi-tokens-as-tvl-closes-above-2b","status":"publish","type":"post","link":"https:\/\/uniquehot.com\/news\/defi\/compound-comp-outruns-top-defi-tokens-as-tvl-closes-above-2b\/","title":{"rendered":"Compound (COMP) Outruns Top DeFi Tokens as TVL Closes Above $2B"},"content":{"rendered":"

Compound Finance’s native token COMP was among the biggest gainers in the decentralized finance space on Wednesday.<\/p>\n

The fourth-largest DeFi token by market cap surged by more than 10 percent, hitting an intraday high of $154.08 as traders assessed a flurry of upside fundamentals around it. A pseudonymous analyst noted that the Compound protocol lured traders with competitive annual percentage yields on its staking platform. That allowed its liquidity pool to attract about $820 million worth of tokens in just five hours.<\/p>\n

“Wonder if longing the bluechip with the highest APY when staked in a pool of a protocol that has amassed ~820m TVL in 5hrs is a reasonable strategy,” the analyst tweeted<\/a>, followed by the word “COMP.”<\/p><\/blockquote>\n

The total value locked inside the Compound smart contracts surpassed $2 billion following the capital inflow. It corrected lower on Wednesday, but traders largely ignored the downside move.<\/p>\n

\"DeFi,<\/a>
Compound Total Value Locked sustains above $2 billion. Source: DeFi Pulse<\/figcaption><\/figure>\n
Compound Total Value Locked sustains above $2 billion. Source: DeFi Pulse<\/a><\/pre>\n
That may have to do with the Compound’s whitepaper released last week wherein it shared the details of its new blockchain: the Compound Chain. The paper projected it as a protocol-independent ledger that would store and transfer crypto assets between multiple blockchains.<\/p>\n
A Break from Ethereum<\/h2>\n
Compound currently uses Ethereum as its principal blockchain. Therefore, its lending protocol cannot offer support to non-Ethereum assets. Compound Chain strives to fill the shortcomings, thereby enabling its protocol to facilitate direct liquidity across “peer chains.” They include\u00a0ETH 2.0<\/a>, Polkadot, Solana, Quorum,\u00a0Celo<\/a>, and many others.<\/p>\n
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Compound Chain is a tool that could bring more assets into the protocol from a variety of ledgers e.g. @Polkadot<\/a>, @solana<\/a>, @optimismPBC<\/a>, Quorum, @CeloOrg<\/a>, etc.<\/p>\n
It's designed to compliment the Ethereum contracts, be controlled by $COMP<\/a> governance, and extend DeFi network effects.<\/p>\n
— Compound Labs (@compoundfinance) December 17, 2020<\/a><\/p><\/blockquote>\n