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Compound v3 set to be deployed on Arbitrum: A strategic move for the protocol

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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…

Compound v3 set to be deployed on Arbitrum: A strategic move for the protocol

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

Analysis based on this information:


The Compound community has taken a significant step towards the development of the protocol by initiating the proposal to deploy Compound v3 on Arbitrum, a leading Ethereum Layer2 network. The proposal, which was put forward by Penn Blockchain (Franklin DAO), highlights the importance of Arbitrum as the ideal platform to optimize the TVL (Total Value Locked) and real-time dApp data of the protocol.

The deployment of Compound v3 on Arbitrum comes at a time when Ethereum Layer2 solutions have gained significant importance in terms of scalability, security, and transaction fees. Layer2 networks such as Arbitrum aim to process an increased number of transactions per second and provide low-cost solutions to users, enhancing the user experience of DApps.

Total Value Locked (TVL) is an essential metric used to measure the growth of decentralized finance (DeFi) protocols. The TVL of a protocol represents the sum of all the assets deposited in smart contracts on a blockchain. By moving Compound v3 to Arbitrum, the Compound protocol is expected to attract more liquidity and user adoption because it provides a more accessible and affordable platform for DeFi users.

Furthermore, the use of Arbitrum as the platform for Compound v3 provides immense benefits in terms of transaction speeds and Gas fees, which are known to be a significant hindrance to the growth of DeFi protocols. Arbitrum aims to empower developers to build a more efficient ecosystem by providing an alternative to the Ethereum mainnet while retaining the secure and scalable infrastructure of the latter.

In conclusion, deploying Compound v3 on Arbitrum is a strategic move by the Compound community to expand its user base, enhance the protocol’s performance, and optimize the TVL and real-time dApp data of the protocol. By leveraging the functionality of the leading Ethereum Layer2 network, Compound will provide a more streamlined and efficient solution to developers and users, strengthening its position in the ever-growing DeFi space.

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