Decentralized finance lending protocol Compound has unveiled a brand new blockchain that may 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, introduced on Mar. 2, has been described as a cross-chain rate of interest market that enables customers to borrow belongings which can be native to at least one chain, equivalent to Ethereum, with collateral from one other chain, equivalent to 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 completely 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 allows builders to create purpose-built high-throughput blockchains. Compound founder Robert Leshner defined the selection of blplatform within the weblog put up:
“We selected Substrate in order that we might give attention to constructing utility 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 operate 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 combined and matched in numerous combos for various networks.
Gateway will even have a local unit of worth known as CASH which can standardized worth throughout numerous disparate belongings and be used to pay transaction charges. CASH will even be earned by liquidity provision and community validators.
Gateway is at the moment operating on Ethereum’s Ropsten community as a testnet, and audits will likely be carried out earlier than the mainnet launch, although no date was specified for this.