Decentralized finance lending protocol Compound has unveiled a brand new blockchain that can allow cross-chain collateral.
It’s the newest transfer to mitigate costly operations on the Ethereum community and allow extra interoperability within the DeFi ecosystem.
The brand new Gateway chain, announced on Mar. 2, has been described as a cross-chain rate of interest market that enables customers to borrow property which might be native to at least one chain, reminiscent of Ethereum, with collateral from one other chain, reminiscent of Polkadot or Celo. Compound Finance initially introduced the platform in December 2020 when it was known as ‘Compound Chain’.
Compound goals to alleviate present fragmentation within the DeFi trade throughout totally different blockchains with Gateway and has chosen the next-generation blockchain structure, Substrate, to take action.
Substrate, which additionally powers the Polkadot community, is a modular framework that permits builders to create purpose-built high-throughput blockchains. Compound founder Robert Leshner defined the selection of blplatform within the weblog publish:
“We selected Substrate in order that we might concentrate on constructing software code, as a substitute of inventing consensus algorithms; it’s a contemporary framework constructed on a contemporary language, Rust.”
To enrich Gateway, Compound is planning to construct ‘Starports’ which might perform as on, and off-ramps, to the brand new blockchain for customers to borrow or deposit an asset as collateral. Leshner elaborated that Starports are the “glue” that connects a blockchain to Gateway, and they are often blended and matched in numerous mixtures for various networks.
Gateway can even have a local unit of worth known as CASH which is able to standardized worth throughout numerous disparate property and be used to pay transaction charges. CASH can even be earned by liquidity provision and community validators.
Gateway is at present working on Ethereum’s Ropsten community as a testnet, and audits will probably be carried out earlier than the mainnet launch, although no date was specified for this.
