Compound releases white paper for new cross-chain protocol

The team behind money market protocol Compound has released a white paper detailing Compound Chain, a new tool they say could bring more assets into the protocol from numerous ledgers. 

The announcement describes Compound Chain as "a distributed ledger capable of transferring value and liquidity between peer ledgers." In other words, users can borrow and lend cross-chain assets from different blockchains like Polkadot and Tezos, in the Compound Chain. 

The blockchain will have its own native token called CASH, which will be used to pay for transaction fees. 

According to the announcement, the blockchain will still be governed by the traditional Compound Governance structure via COMP tokens on Ethereum. 

The team says it is building a limited-feature testnet implementation, which it expects to release in early 2021. 

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Saniya More (pronounced: Saan-ya Mo-ray) is a quadrilingual journalist at The Block. She got her master’s degree from the Columbia University Graduate School of Journalism and did her undergraduate degree at the S.I. Newhouse School of Public Communications, Syracuse University. Her work has appeared in CBS News, Bangkok Post, Thai Enquirer, Globalists, Byline Times and other publications. When she’s not chasing a story, you will most likely find her biking, tweeting, taking photos or creating Spotify playlists for every occasion.