Compound Launches Institutional-Only Lending Market at 87% Loan-to-Value Ratio

Compound has launched its institutional-only lending market, offering whitelisted borrowers up to an 87% loan-to-value ratio on four assets. The market lends USDC against ETH, wstETH, WBTC, and cbBTC, with DeFi Saver, K3/Nexo, KPK, and Yearn participating in the initial launch.

The institutional market is part of Compound's plan to build infrastructure for institutional clients, offering better capital efficiency, clearly defined risk, and higher service standards. According to Aaron Schnarch, executive director of Compound Foundation, 'With today's Institutional Market launch, we are taking the first step toward building infrastructure to meet institutional client demands.'

The market was oversubscribed on day one, with Marcelo Ruiz de Olano, co-founder and CEO of KPK, stating that 'Compound is combining the capital efficiency of onchain markets with the level of service institutional participants expect.'