Compound Integrates with Ethereum Layer 2 Solution Base for Bridged USDC Access

Compound Integrates with Ethereum Layer 2 Solution Base

Crypto DeFi platform Compound has announced its integration with Ethereum Layer 2 solution, Base. Users can now access USDbC on Base and use both ETH and cbETH as collateral. This comes after Circle CEO Jeremy Allaire highlighted the global appeal of USDC, with 70% of its adoption coming from outside the US. The total collateral on Base is $3.76 million and the borrowing value is $2.25 million. Compound’s announcement coincides with Onchain Summer, an event for Base that caters to the NFT market.

Key Points:

Compound integrates with Ethereum Layer 2 solution Base
Users can access USDbC on Base and use both ETH and cbETH as collateral
Circle CEO highlights global appeal of USDC
Total collateral on Base is $3.76 million
Compound’s announcement coincides with Onchain Summer event

SushiSwap V2 to Debut on Base

SushiSwap’s chief, Jared Grey, confirmed that SushiSwap V2 will soon debut on Base. This announcement was made via a tweet, stating that SushiSwap will support all teams requesting it on Base. Base has seen significant engagement, with users bridging a total value of $216 million and over 100,000 active users daily between August 10 and 14.

Key Points:

SushiSwap V2 will debut on Base
Base has seen significant engagement with users
Users have bridged a total value of $216 million on Base
Over 100,000 active users daily on Base

Concerns in the Crypto Community

Ethereum co-founder Vitalik Buterin has expressed concerns about decentralizing Layer 2 scaling networks like Base, suggesting they may have ‘backdoors’ that could allow for regulatory interference. BeinCrypto also highlighted the centralized nature of solutions like Base due to Coinbase’s control. However, the decentralization claims of platforms with corporate or VC backing should be evaluated on a case-by-case basis.

Hot Take:

The integration of Compound with Ethereum Layer 2 solution Base provides users with more options for collateral and borrowing. The global appeal of USDC and the engagement seen on Base demonstrate the growing interest in decentralized finance. However, concerns about the decentralization and potential regulatory interference in Layer 2 solutions like Base should be carefully considered.