<strong>Compound Finance</strong> has released a <a href="https://compound.cash/" target="_blank" rel="nofollow noopener">whitepaper</a> detailing plans to launch its own blockchain called <strong>Compound Chain</strong>. The new application-specific blockchain will provide market services across multiple networks to enable the transfer of value and liquidity. The intention behind the new blockchain is to function like Compound, however in a cross-blockchain manner. For example, users can borrow and lend cross-chain assets from various blockchain platforms such as Polkadot, Tezos, etc within the Compound Chain.
<h2><strong>Compound Finance to Launch Its Own Blockchain</strong></h2>
<a href="https://www.cryptoknowmics.com/news/compound-introduces-its-own-price-oracle-on-platform/">Compound Finance</a> has been the first to launch governance token distribution in June 2020 and has been one of the key platforms for liquidity farming. Its latest foray into launching a new service aims to onboard assets from other ledgers.

https://twitter.com/compoundfinance/status/1339660221359124481

As per the whitepaper, the latest blockchain will help in speeding up <strong>central bank digital currencies</strong> (CBDCs) as well as the growth of <strong>tokenized assets</strong> from new ledgers including ETH 2.0.

The latest blockchain will still be governed by <strong>Compound Governance structure via COMP tokens on Ethereum</strong>. The team behind Compound is also actively building a testnet implementation with limited features, expected to be released in Q1 2021.
<h2><strong>New Blockchain to Use Native Token Called CASH</strong></h2>
The cross-chain protocol will use its native token called <strong>CASH</strong> to pay for transaction fees and incentivization. This suggests that the network might follow a proof-of-stake consensus mechanism. However, the whitepaper describes itself as a proof-of-authority network operated by governance approved network validators.

CASH token will be minted in a similar way to DAI, as a debt against locked collateral held on the Compound Chain. Similar to DAI, CASH will be arbitrarily pegged to the U.S. dollar. Although, its peg could also be changed by governance decisions.

Unlike DAI, CASH can earn some kind of yield from a portion of interest paid against loans originated on the blockchain. The exact amount will be one of many parameters determined by COMP holders who will participate in governance votings.

Compound Finance Releases Whitepaper to Launch Its Own Blockchain

Compound Finance has released a whitepaper to launch its own blockchain called Compound Chain to provide market services across multiple networks.

Jafrin is a cryptocurrency journalist/researcher fascinated by the world of decentralization. She is hopeful towards blockchain’s innovation and its potential to reshape the world for good. Currently, she is bringing out the best of cryptosphere via covering the latest ins and outs of the blockchain space.

Compound Finance Releases Whitepaper to Launch Its Own Blockchain

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