Compound becomes latest DeFi protocol to go live on Base

Quick Take

  • Compound is live on the new Ethereum Layer 2 Base, enabling ETH and cbETH as collateral.
  • SushiSwap Head Chef Jared Grey also confirmed the decentralized exchange’s V2 is coming to the network.

DeFi lending platform Compound is the latest protocol to launch on the new Coinbase-incubated Ethereum Layer 2 network Base.

The integration allows users to utilize ether and Coinbase-wrapped staked ether as collateral to borrow the newly bridged USDC stablecoin, known as USDbC, on Base, developer Compound Labs said on Monday.

According to the market dashboard, the current total collateral is $3.64 million, with the total amount borrowed reaching $2.25 million. Lenders can earn an APR of 1.25%, while users can borrow at an APR of 2.84%. Ether represents $2.47 million of the collateral deployed and cbETH represents $1.17 million.

Compound joins other DeFi protocols on Base

Jared Grey, Head Chef of the decentralized exchange SushiSwap, also confirmed that SushiSwap V2 is also coming to Base due to project demand, having previously deployed its V3 on the network. Further communication on the move is expected this week. 

Last week, the largest decentralized exchange, Uniswap, also integrated its V3 to the Ethereum Layer 2 — generating over 10,000 transactions on its first day of launch.

The Base mainnet officially opened to the general public on August 9, with the number of daily active users on Base surpassing 100,000 — partly attributed to social network Daily transactions on the Ethereum Layer 2 are also approaching the levels of dominant Optimistic Rollup scaling solutions Optimism and Arbitrum, according to The Block’s data dashboard.

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