Compound Launches Institutional Lending Market with Up to 87% Loan-to-Value Ratios

Compound has launched an institutional-only lending market, just three weeks after relaunching its protocol focused on institutional credit.

The Institutional Market separates Compound's liquidity into two parts and caters to whitelisted institutions with their own collateral sets, loan-to-value ratios, and a dedicated point of contact.

The market lends USDC against ETH, wstETH, WBTC, and cbBTC at up to 87% loan-to-value ratios, with a $10 million borrow cap on each asset. Compound says it was oversubscribed at launch, with DeFi Saver, K3/Nexo, KPK, and Yearn taking part.

Aaron Schnarch, executive director of the Compound Foundation, said: 'We are combining the capital efficiency of onchain markets with the level of service institutional participants expect.' Marcelo Ruiz de Olano, co-founder and CEO of KPK, added that the market is 'a compelling new market' for institutions.