Compound Foundation Launches Institutional USDC Lending Market With 87% LTV
Compound Foundation opened an institutional USDC lending market accepting ETH, wstETH, WBTC and cbBTC as collateral at up to 87% loan-to-value.
Why it matters
The launch signals Compound's push into institutional DeFi lending, though its governance structure—implemented without a DAO vote—has already drawn internal pushback. The market was oversubscribed at launch, suggesting demand from institutional participants.
Key facts
Compound Foundation opened a USDC lending market accepting ETH, wstETH, WBTC and cbBTC as collateral at up to 87% loan-to-value.
87 %Reported by The Defiant
The market went live under a control structure the DAO never voted on.
Reported by The Defiant
Compound is sixth among lending protocols on DefiLlama and TVL is up 23% over 30 days.
23 %Reported by The Defiant
COMP trades at $20.88, up 9% over seven days, for a market cap of $212 million.
20.88 USDReported by The Defiant
The market was oversubscribed on its first day.
Reported by The Defiant
What happened
Compound Foundation launched an institutional lending market for USDC, accepting ETH, wstETH, WBTC and cbBTC as collateral at loan-to-value ratios of up to 87%. The product is the first from a $52 million program approved by COMP holders and runs on Compound v3. According to The Defiant, the market went live under a control structure the DAO never voted on: the Treasury Management Committee administers the market while a separate Safe holds authority over collateral and parameters. A Compound delegate is now asking COMP holders to reverse this arrangement. The market was oversubscribed on its first day. Aaron Schnarch, executive director of Compound Foundation, said the launch is the first step toward building infrastructure to meet institutional client demands for better capital efficiency, defined risk and higher service standards.
How the story developed
- First report
First report by The Defiant
Compound Opens Institutional Market With 87% LTV
- Update
Compound Foundation launches institutional USDC lending market
Market accepts ETH, wstETH, WBTC and cbBTC at up to 87% LTV on Compound v3. First product from $52M program approved by COMP holders. Oversubscribed on day one.
- Update
Compound delegate asks COMP holders to reverse DAO-unapproved control structure
A Compound delegate is asking COMP holders to reverse the arrangement where the Treasury Management Committee administers the market and a separate Safe holds authority over collateral and parameters.
Affected entities
Original sources
| Publisher | Report | Role | Published |
|---|---|---|---|
| The Defiant Crypto media | Compound Opens Institutional Market With 87% LTV | Original |
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