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Compound approves $52 million budget to pivot toward institutional DeFi
Compound said total value locked has fallen to $1.2 billion from a $12 billion peak in 2021, prompting its shift to real-world assets and credit infrastructure for traditional markets.
Compound Finance has approved a $52 million budget and refreshed its leadership as it pivots toward institutional DeFi, aiming to bring in traditional financial players after weaker retail demand.
The protocol said its total value locked has dropped to $1.2 billion from a $12 billion peak in September 2021, and it plans to develop real-world asset offerings, partner integrations, and credit infrastructure designed to align with traditional finance compliance and technical standards.
CoinDesk reports Compound, a long-running DeFi lending platform that began in 2018, has processed about $480 billion in deposits and borrowing volume since inception, but it has lost ground to competitors including Aave.
As a broader backdrop, DeFi total value locked across the sector has fallen by more than a third since the start of the year to about $70 billion, amid crypto market weakness, compressed yields, and exploits including a $292 million KelpDAO hack in April.