Decentralized finance lending protocol Compound has unveiled a brand new blockchain that may allow cross-chain collateral.
It is the most recent transfer to mitigate pricey operations at the Ethereum community and allow extra interoperability within the DeFi ecosystem.
The new Gateway chain, introduced on Mar. 2, has been described as a cross-chain rate of interest marketplace that permits customers to borrow belongings which might be local to one chain, akin to Ethereum, with collateral from every other chain, akin to Polkadot or Celo. Compound Finance in the beginning introduced the platform in December 2020 when it used to be referred to as ‘Compound Chain’.
Compound targets to alleviate present fragmentation within the DeFi trade throughout other blockchains with Gateway and has selected the next-generation blockchain structure, Substrate, to accomplish that.
Substrate, which additionally powers the Polkadot community, is a modular framework that allows builders to create purpose-built high-throughput blockchains. Compound founder Robert Leshner defined the number of blplatform within the weblog put up:
“We chose Substrate so that we could focus on building application code, instead of inventing consensus algorithms; it’s a modern framework built on a modern language, Rust.”
To supplement Gateway, Compound is making plans to construct ‘Starports’ which might serve as 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 able to be blended and paired in quite a lot of combos for various networks.
Gateway will even have a local unit of price referred to as CASH which can standardized price throughout quite a lot of disparate belongings and be used to pay transaction charges. CASH may also be earned through liquidity provision and community validators.
Gateway is recently operating on Ethereum’s Ropsten community as a testnet, and audits will likely be performed sooner than the mainnet release, despite the fact that no date used to be specified for this.