cryptoknowmics.com
Users and financial institutions can apply for loans through Compound Treasury, a non-custodial, decentralized peer-to-peer lending platform, using their crypto assets as collateral. A subsidiary of Compound Labs, Inc., Compound Prime, LLC, offers Compound Treasury. Vice President of the GM Compound Treasury is Reid Cuming. He claimed that reputable banks could handle "USD or USDC" with fixed rates beginning at 6% APR. It performs using Bitcoin, Ether, and other recognized ERC-20 assets as collateral. Compound Treasury received a credit rating from a significant agency in May, making it the first DeFi-backed company to do so. It brought the industry's highest degree of accountability and transparency. https://twitter.com/compoundfinance/status/1570035611314098177
The statement claims that loans won't have any restrictions and will only use smart contracts. The newest project from Compound comes when most organizations are transitioning to using cryptocurrency for trading or payments. Financial institutions have witnessed the creation of new financial tools, like crypto lending, which is already gaining popularity.
In Need Of Liquidity
With the growth of any ground-breaking new industry comes the potential for customers to be the target of dishonest individuals working in the new market. Millions of individuals worldwide have adopted and used cryptocurrencies on a large scale. New financial innovations like crypto financing are also being developed that use these technology's capabilities. To make the entire process transparent and stop any targeted illicit conduct, Compound claims to use smart contracts.