Compound bets $52 million, new leadership team in switch to institutional focus
The protocol pioneered decentralized finance lending, but assets locked have tumbled from a peak five years ago. Now it’s looking to attract institutions after retail traders lost interest.
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Summary
- Compound Finance overhauled its leadership and approved a record $52 million budget as it seeks to revive growth after its total value locked fell to $1.2 billion from a $12 billion peak in 2021.
- The protocol is pivoting toward institutional clients by developing real-world asset offerings, partner integrations and credit infrastructure designed to meet traditional finance compliance and technical standards.
- Industry executives say the new leadership team and sizable budget align with a broader shift in DeFi toward serving financial institutions, after the sector’s overall assets declined amid market weakness and security exploits.
