Compound v3 is the latest <a href="https://medium.com/compound-finance/compound-iii-is-live-a7983dee7e60" target="_blank" rel="nofollow noopener">release</a> of The Compound's decentralized finance (DeFi) lending platform. According to a blog post published by the protocol's creator, the limited production release lowers the number of supported tokens that can be loaned and collateralized on the system.

The most recent version of Compound, called Comet, enables users to borrow a single, interest-earning asset, USD Coin (USDC), while using wrapped Bitcoin (<a href="https://www.cryptoknowmics.com/news/celsius-moves-510m-worth-of-wrapped-bitcoin-to-ftx-after-debt-payoff/" target="_blank" rel="noopener">wBTC</a>) and native tokens from Chainlink (LINK), <a href="https://www.cryptoknowmics.com/news/uniswap-includes-sudoswap-to-have-access-to-deeper-nft-liquidity/" target="_blank" rel="noopener">Uniswap</a> (UNI), and Compound (COMP) as security.
<h2>Compound v3 With New Security Feature</h2>
Compound v3 improves the security and scalability of the system by using Chainlink as the protocol's only pricing feed and streamlining smart governance contracts. The assets subject to the limited release methodology are restricted to $100 million, or around 2% of the $3.8 billion in assets owned by Compound v2.

Robert Leshner, the creator of Compound, claims that Compound v3 enables users to borrow more tokens with lower liquidation risks and fees.

Compound's earlier iterations used the pooled-risk model that supported nine cryptocurrencies, including <a href="https://www.cryptoknowmics.com/news/coinbase-derivatives-exchange-to-add-nano-ether-futures-contract/" target="_blank" rel="noopener">Ether</a> (ETH), dai (DAI), and <a href="https://www.cryptoknowmics.com/news/tether-holds-firm-on-decision-not-to-freeze-tornado-cash-addresses/" target="_blank" rel="noopener">Tether</a>. Users would deposit their assets into lending pools in the old model, and those deposits would generate interest.

Lenders collected cTokens, which reflected the value of their deposits in return. The lender may borrow a specified portion of the value of their collateralized assets in another crypto using those cTokens.
<h2>Compound Cracking Down On Unauthorized Forks</h2>
Compound v3 is decreasing the number of supported tokens on the network and putting further restrictions on unapproved forks.

A protocol can be <a href="https://www.cryptoknowmics.com/news/justin-sun-announces-to-support-eth-pow-forked-tokens/" target="_blank" rel="noopener">forked</a> by copying its code to a different project. Forks typically include changes to the original code of a protocol. However, some low-effort Compound forks were brand-new versions of the original platform.

Compound Launches New DeFi Lending Platform Compound v3

According to a blog post, Compound v3 is the latest release of The Compound's decentralized finance (DeFi) lending platform.

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.

Compound Launches New DeFi Lending Platform Compound v3

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