Compound Bets Big on Institutional Pivot with $52M Budget

Compound, a leading decentralized lending protocol, has made a significant move to revamp its operations and attract institutional investors. The protocol has approved a record $52 million development budget and appointed traditional-finance veterans to its leadership team.

The new leadership includes Chief Operating Officer Christopher Donovan, who previously worked at the Near Foundation, and Chief Product Officer Steven Liu, who grew Maple Finance's assets from $500 million to $5 billion. Aaron Schnarch, former CEO of Coinbase Custody, joins as an executive director, bringing his expertise in institutional finance.

The protocol is shifting its focus towards institutions, rather than retail investors, which has been the dominant force in DeFi. This move is seen as a recognition that current products 'fall short of meeting the traditional finance bar'.