Compound Makes a $52M Push Into Institutional Finance After Retail Interest Fades

TL;DR

• Compound approved a record $52 million budget and renewed its leadership team to attract institutional capital to the DeFi ecosystem.
• The protocol lost nearly all of its $12 billion TVL from 2021, now down to just $1.2 billion, while Aave multiplied its own more than 11 times.
• The new leadership team includes former executives from HSBC, Coinbase Custody, Anchorage Digital, Broadridge Financial and Maple Finance.

Compound Finance, one of the most established decentralized lending protocols in the industry, approved a $52 million budget and completely renewed its leadership team with the goal of attracting institutional capital. With this decision, it will attempt a strategic shift toward real-world assets, integration with partners and credit infrastructure for traditional financial markets.

The protocol was a pioneer in decentralized lending since its launch in 2018, popularizing yield generation on crypto deposits without intermediaries. Since then, it has processed approximately $480 billion in deposits and loan volume. However, its total value locked (TVL) collapsed from a peak of $12 billion in September 2021 to the current $1.2 billion, while competitors such as Aave accumulate more than $14.8 billion according to data from DeFiLlama.

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