Compound Foundation has announced it will integrate Chainlink into the latest evolution of Compound, an algorithmic, autonomous interest rate protocol built to unlock open financial applications.
Chainlink has powered lending markets on Compound for over four years. Compound v4 will expand v3’s use of Chainlink Data Feeds, which have enabled over $28 trillion in transaction value, and Smart Value Recapture (SVR), a novel solution for recapturing non-toxic Maximal Extractable Value (MEV).
Compound’s proposed v4 roadmap is optimized for the convergence of DeFi and TradFi, as well as expansion into isolated markets, tokenized real-world assets (RWAs), and compliant institutional vaults.
Chainlink’s institutional-grade Data Feeds will facilitate secure pricing and verifiable risk controls. SVR recaptures and redirects Oracle Extractable Value (OEV), a form of MEV created during the transmission and consumption of oracle reports, back to the protocol and users.