Compound III Now Expanded To Layer-2 Arbitrum
Compound Labs announced that Compound III had been deployed to Arbitrum, allowing the use of ARB, GMX, WETH, and WBTC as collateral to lend USDC. This is the third blockchain deployed by Compound III after Ethereum and Polygon. Compound, the veteran lending protocol of Ethereum, announced in August last year the launch of the third version of the EVM-compatible chain, Compound III “Comet” can be used for lending, while other assets are mortgage assets.
Compound III. Kevin Cheng, Senior Software Engineer at Compound Labs, explains that Comet will significantly save gas for users by not changing the parameters of the protocol. Each type of collateral on the platform comes with custom loan and liquidation rates, with WETH and WBTC having slightly lower liquidation fees. The USDC market will target a reserve fund of 5 million USDC and have a minimum loan size of 100 USDC. Compound II uses a risk pool model where users can borrow any asset. In this model, the protocol is as secure as the single weakest asset, and this can also lead to bad assets draining all assets in the protocol. Currently, lending protocols such as Aave also work in this way.
Source
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