Compound v3 proposal to deploy on Arbitrum – A Step towards Improving the Protocol

02/28/2023 08:30 • AI & Tech Insights • 75 views

On February 28, according to the information on the relevant pages, the Compound community initiated a proposal to deploy Compound v3 to Arbitrum. The proposal was initiated by Penn Blockchain (Franklin DAO). According to the proposal, from the perspective of TVL and real-time dApp data, Arbitrum is the leading Ethereum Layer2 network, and deploying Compound v3 to Arbitrum will be an important step in the development of the protocol.

The Compound community initiated a proposal to deploy Compound v3 to Arbitrum

Interpretation of the news:

The Compound community has initiated a new proposal to deploy Compound v3 on Arbitrum. The proposal is significant and has been initiated with a view to improving the Compound v3 protocol. According to the proposal put forward by the Penn Blockchain (Franklin DAO), Arbitrum is the leading Ethereum Layer2 network. It is claimed that deploying Compound v3 on Arbitrum will serve as a crucial move ahead for the protocol. The community’s objective appears to be to enhance liquidity and improve the user experience on the Compound Network.

With this proposition, it is clear that the blockchain community is actively seeking new and innovative ways to upgrade the system. It is well known that Compound is among the leading decentralized finance (DeFi) protocols, and the Compound team continuously works on advancing its technology stack. This continues to attract more users and provides better opportunities for participants in the DeFi space.

The proposal’s core idea is to leverage the benefits offered by Arbitrum to achieve substantial improvements in the protocol’s overall performance. It is being suggested that the move will improve Compound’s Total Value Locked (TVL) and real-time DApp data. Arbitrum is known for being a fast and efficient scaling solution while retaining compatibility with the Ethereum virtual machine. This translates into a faster response time, lower gas fees, and improved user experience.

The Compound v3 deployment on Arbitrum will make it more accessible for the community to participate in the protocol’s activities without facing any challenges posed by the Ethereum mainnet. The integration with Arbitrum will be a critical step in expanding the reach of the Compound protocol, offering the community lower gas fees, efficient transactions, and a seamless user experience.

In conclusion, the proposal to deploy Compound v3 to Arbitrum is a significant step towards improving the Compound protocol. The move underlines the community’s willingness to explore new and valuable solutions to enhance the effectiveness and reach of DeFi protocols. It will be intriguing to observe how this proposition unfolds and whether it brings about the desired improvements for the Compound network.

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