Compound's COMP surges as project unveils $52M institutional pivot

Compound, one of the first protocols to make crypto lending work without a bank, has approved a record $52 million development budget and rebuilt its leadership around traditional-finance veterans. 

It is also wagering its next chapter on institutions, which is seen as a move away from retail yield-chasers who once drove DeFi. Its native token, COMP, seems to have received a boost as a result of the announcement, as it has gone up by over 10% in 24 hours.

Projects that grew up serving retail now court banks, asset managers, and compliance departments to find their footing again, and Compound seems to be moving in that direction. 

Compound’s foundation wrote on X that the protocol is “entering its next era.”

From $12 billion to $1.2 billion

The total value locked (TVL) on Compound has fallen to around $1.2 billion, which is a decline of around 90% from the $12 billion the protocol held at its September 2021 peak per DeFillama. 

The vast majority of the TVL is on Ethereum, with Arbitrum coming a distant second.

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