HomeCoinsBitcoin (BTC)Compound Launches Treasury to Introduce Institutions to Defi – Bitcoin News

Compound Launches Treasury to Introduce Institutions to Defi – Bitcoin News

- Advertisement -


Compound, one of the leading defi-based protocols, is launching a new service called Treasury. Compound’s Treasury is a new product designed to help institutions enter the defi space. Launched in partnership with Circle and Fireblocks, it skips the uber astounding rates conventional defi protocols offer. However, it seeks to offer stable revenue for companies looking to get passive income from their funds in dollars.

Compound to Coax Institutions With Treasury

Compound Labs, the company behind the Compound defi protocol, launched Treasury, a new defi service designed for institutions. This new service seeks to offer institutions the chance to garner defi-based gains without having to go the extra mile to do so. Treasury allows third parties to use fiat dollars to enter the space.

Compound Labs has partnered with Circle and Fireblocks and allows institutions to register and open a treasury account, where these institutions can wire dollars. Circle offers the conversion services to transform these dollars to USDC while using Fireblocks to keep these assets safe from attacks.

Treasury will offer a fixed interest rate of 4% per year on the funds deposited. This is very different from other defi “degen” protocols that offer risky yields of 1000%, but it offers higher yields than traditional banking institutions. The product will also allow withdrawals on demand, effective 24 hours after the request, and no fixed terms.


Getting Institutions Into Defi

While some companies have been making advances in bringing defi to institutions, there has not yet been a real success story in this regard. Metamask also announced a service directed at institutions not long ago, offering support to access apps and protocols. But due to the number of hacks in the environment, these third parties are wary of supporting the protocols.

Compound Labs is looking to remedy this wariness by partnering with known and regulated companies. Circle and Fireblocks are involved, possibly giving the instrument an advantage over similar offerings. Current, a fintech company, has already partnered with Compound to offer Treasury through its app. Trevor Marshall, Current’s Chief Technology Officer stated:

Working with Compound Treasury, we’ll be able to give our members access to the protocol’s interest rates through a simple and unified experience that can enable even more people to improve their financial outcomes.

What do you think about Compound’s Treasury product? Tell us in the comments section below.

Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.





Source link

- Advertisement -
profile logo 500x500
Mr Bitcointehttps://www.bitcointe.com/
“Fact You Need To Know About Cryptocurrency - The first Bitcoin purchase was for pizza.” ― Mohsin Jameel
462FansLike
76FollowersFollow
4,567FollowersFollow
5,261FollowersFollow
1,493FollowersFollow
2,230SubscribersSubscribe

Most Popular

bitcoin
Bitcoin (BTC) $ 44,128.00
ethereum
Ethereum (ETH) $ 3,089.47
tether
Tether (USDT) $ 1.00
bitcoin-cash
Bitcoin Cash (BCH) $ 552.71
litecoin
Litecoin (LTC) $ 160.51
eos
EOS (EOS) $ 4.38
okb
OKB (OKB) $ 17.24
tezos
Tezos (XTZ) $ 5.53
leo-token
LEO Token (LEO) $ 3.00
cardano
Cardano (ADA) $ 2.17
monero
Monero (XMR) $ 236.44
stellar
Stellar (XLM) $ 0.287005
chainlink
Chainlink (LINK) $ 24.64
huobi-token
Huobi Token (HT) $ 12.56
tron
TRON (TRX) $ 0.094937
usd-coin
USD Coin (USDC) $ 1.00
dash
Dash (DASH) $ 181.85
neo
NEO (NEO) $ 42.97
iota
IOTA (MIOTA) $ 1.38
nem
NEM (XEM) $ 0.162276
zcash
Zcash (ZEC) $ 119.83
maker
Maker (MKR) $ 2,548.80
paxos-standard
Pax Dollar (USDP) $ 1.00
ethereum-classic
Ethereum Classic (ETC) $ 50.21
vechain
VeChain (VET) $ 0.097444
true-usd
TrueUSD (TUSD) $ 1.00
ftx-token
FTX Token (FTT) $ 54.89
kucoin-shares
KuCoin Token (KCS) $ 10.44
waves
Waves (WAVES) $ 24.16