A Quick Look at Compound’s New Cross-Chain Solution Compound Chain Highlights

Editor's Note: This article comes fromGolden Finance, reprinted by Odaily with authorization.

Editor's Note: This article comes from

Golden Finance

, reprinted by Odaily with authorization.EthereumWith the development of DeFi, due to many factors such as Ethereum performance limitations and cross-chain requirements, leading DeFi projects are all in need of solutions.

Many projects have chosen Layer2, while Compound has chosen a new solution. On December 18, 2020, the Compound development team announced the release of Compound Chain and initially introduced the details of Compound Chain.

Ethereum

assets.

Therefore, the goal of Compound Chain is to be a distributed ledger that is independent of Compound and can transfer value and liquidity across chains between peer-to-peer distributed ledgers, so as to solve the above-mentioned limitations faced by Compound, and actively welcome various blocks from ETH, Polkadot, and CDBC. The rapid explosion of blockchain digital assets.

According to some details disclosed in the Compound Chain white paper, the Golden Finance reporter will take you through the key points of Compound Chain.

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Compound Chain Architecture

According to the Compound Chain white paper, Compound Chain will be operated by a group of decentralized verification nodes. Each verification node can not only execute the same state change logic of each blockchain, but also perform sidecar functions in an off-chain form.

This requires validators to continuously listen to the "Starport" contract events and sign valid requests completed by users. After the verification node reaches a consensus on the event, it is written to the Compound Chain.

Users use their existing addresses on blockchain networks such as Ethereum and Solana to interact with Compound Chain, and the address on Compound Chain is marked with the address on the bridge chain.

The asset balance on the Compound Chain can be sent to any other address, for example, an Ethereum address can send Compound Chain ETH to a Tezos address, and a Tezos address can send Compound Chain WBTC to a Solana address.

Compound Chain can create new assets, and bridge chains can also reach these assets.

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New Token CASH

Compound Chain will issue the native accounting unit token CASH through lending, similar to MakerDAO's DAI. By staking assets, users can borrow CASH and also need to use CASH to pay transaction fees on the Compound Chain.

Yield and Spread are core governance parameters.

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Like other assets, CASH can also enter the bridge chain. In order to calculate interest on CASH synchronously on the bridge chain and Compound Chain, Yield_cash will be periodically synchronized to the bridge chain contract, and the interest will be calculated on the bridge chain.

CASH was initially set at $1, and its value was subsequently backed by Compound Chain protocol arbitrage. Through governance, CASH can track some indexes, such as CPI or a basket of currencies.