Compound Brings Institutional Lending to DeFi

Compound's latest move is to offer DeFi-as-a-Service (DaaS) on its platform, allowing users to lend and borrow a wide range of digital assets. The dedicated USDC 'institutional market' on Compound v3 has been activated, with over $10 million in borrowing capacity for each asset, and liquidation factors ranging from 86% to 93%. By offering loans-to-value terms at the top of its own market rate, Compound is making it easy for institutional players to participate in DeFi. The market accepts only four collaterizable assets: ETH (87% LTV), wstETH (85%), WBTC, and cbBTC (81%).

Meanwhile, Compound has reported that the institutional market was oversubscribed at launch, validating its demand thesis. The platform will distribute up to $200,000 in USDC per month over three months, subject to a minimum ticket of $100,000 and an eligible deposit cap of $20 million.