Compound releases white paper for new cross-chain protocol
December 17, 2020, 3:28PM EST
1 min read
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.