Key Points:
- Compound goes live on Coinbase’s new Base layer-2 network.
- The move allows using ETH and cbETH as collateral to borrow stablecoin USDC.
- The integration is part of the growing ecosystem on Base, along with Uniswap, SushiSwap, and more.
Decentralized finance lending protocol Compound has expanded to Base, the new layer-2 network developed by leading crypto exchange Coinbase. Compound is the latest DeFi project to leverage Base’s scalability and low transaction costs.
Rapid Ecosystem Growth on Base Layer-2
The integration enables Compound users to supply ETH and cbETH as collateral to borrow the USDC stablecoin on Base. Currently, there is $3.64 million total collateral supplied, with $2.47 million in ETH and $1.17 million in cbETH. The total borrowed sits at $2.25 million USDC.
Lenders can earn 1.25% APR, while borrowers pay 2.84% to access funds. Compound joins a rapidly growing roster of DeFi applications integrated with Base, including Uniswap, SushiSwap, Chainlink, Reservoir, and more.
Mass DeFi Migration to Base
SushiSwap has also confirmed it is bringing its V2 decentralized exchange to Base shortly due to strong developer demand. Uniswap’s V3 recently launched on Base as well, highlighting the layer-2 network’s appeal.
Base went live to the public in early August after months of testing. Adoption has exceeded expectations, with over 100,000 users onboarded already. The total value locked has hit $114 million as activity migrates from congested Ethereum.
By leveraging roll-up technology, Base offers significant speed and cost advantages. It can bundle transactions off-chain before batch-recording them on Ethereum to reduce fees.
This makes Base an attractive platform for DeFi projects like Compound struggling with Ethereum’s constraints. As more leading protocols integrate, Base could emerge as a DeFi hub rivaling fellow layer-2s.
For Coinbase, the rapid ecosystem growth validates its own blockchain bet. Base provides a tailor-made environment to meet surging demand for DeFi and Web3 services amidst crypto’s mass adoption.
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