The developers of the DeFi Compound protocol have unveiled a new Gateway blockchain that will launch cross-chain lending and improve interoperability of DeFi platforms.
In a Medium article, the Compound developers announced the new Gateway blockchain, which is the “cross-chain interest rate marketplace.” It enables users to borrow assets from one network while collateralizing the assets of another network. Compound Finance originally announced the platform in December 2020 when it was called Compound Chain.
The new Compound project aims to facilitate the interoperability of projects in the DeFi industry. To do this, the developers chose the next generation Substrate blockchain architecture, on the basis of which Gateway was created. The Polkadot blockchain is also powered by Substrate.
Substrate is a modular framework that allows developers to create specialized high-performance blockchains. Compound founder Robert Leshner explained the choice in a blog post:
“We chose Substrate to focus on building application code rather than inventing consensus algorithms. This is an up-to-date framework, built in modern Rust. ”
In addition to Gateway, Compound plans to create Starports that will facilitate interaction with the new chain and allow users to borrow or deposit assets as collateral. Leschner explained that Starports is the glue that connects blockchain to Gateway and can be mixed and matched in various combinations for different networks.
Gateway will launch its own crypto asset, CASH, which will standardize the value of various assets and be used to pay transaction fees. CASH will be distributed as a reward to liquidity providers and network validators.
Gateway is currently running on the Ropsten Ethereum testnet. Audits will be conducted prior to the launch of the main network. The exact launch date of the project is still unknown.