Compound Finance announced its new blockchain that will enable various cross-chain assets on the same protocol.
The company issued a Whitepaper, which detailed the new blockchain and a token to work on the Compound Chain called Cash.
Compound Finance launches Compound Blockchain and Native Token CASH.
The firm explains Compound Blockchain as a distributed ledger that can inexpensively store and transfer value and liquidity between peer ledgers. It would use CASH token for the disparate assets and incentivize validation. Using the Compound Blockchain, users would be able to store assets from other blockchains, increasing the efficiency of the Compound Blockchain.
Until now, Compound finance only used Ethereum and supported Ethereum based assets; however, it would be able to provide more comprehensive cross-chain support.
The Compound Blockchain extends Compound Protocol that helps in eradicating several underlying limitations of the Compound Finance protocol, like the high transaction cost and the aggregated risk of supported assets. The new blockchain would enable the growth of digital assets on a new blockchain apart from Ethereum.
CASH, the native token of the new blockchain, would be used for transactions on the blockchain. The asset is developed by borrowing like MakerDAO DAI, and it would be used to pay the transaction fees on the Compound Blockchain. The users would be able to borrow the CASH token and then payout the transaction costs.
Compound Finance released a Whitepaper that detailed the technicalities of the Compound Blockchain and Cash token. The Compound Chain would operate on the public/Private key pairs to manage the assets with messages and signed contracts. It would use the Compound CASH for transactions, and users can work with the Compound Chain through their public/private key pairs from another blockchain. The balance is shared with the addresses on different chains.
Compound Blockchain is a standalone distributed ledger that allows users to upload the supported assets from multiple chains on it and will enable them to borrow CASH token by using any supported asset as collateral. The Compound Chain enhances DEFI and is governed through the Ethereum Compound governance, and users can use download assets and CASH on their peer chains without any hassle.
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