Compound Taps $52M Development Budget in Bid for Institutional Dominance
Compound, a pioneering protocol in decentralized finance (DeFi), has made a significant shift towards institutional adoption. The protocol has approved a $52 million development budget and revamped its leadership with traditional-finance veterans.
The new team includes Chief Operating Officer Christopher Donovan, who previously held the same position at 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.
Compound is betting on institutions, which it sees as a move away from retail yield-chasers. The protocol has processed around $480 billion in deposits and borrowing since its launch in 2018, but growth stalled following the end of incentive programs.
The leadership overhaul and institutional pivot are seen as a serious move by Compound's founder, with over 10 partners committed to the new hub-and-spoke design. However, not everyone is sold on credentials alone, with Himanshu Sahay of Arch Lending warning that institutions 'aren't underwriting teams, they're underwriting structures.'