Compound opens USDC market with up to 87% LTV

Compound Foundation has launched a USDC lending market with loan-to-value ratios of up to 87% as part of its $52 million plan to attract institutional capital. Summary The market supports ETH, wstETH, WBTC, and cbBTC as collateral for USDC borrowing. Loan-to-value ratios range from 81% for Bitcoin collateral to 87% for ETH. Compound said DeFi Saver, K3, KPK, and Yearn joined the oversubscribed launch. A Compound delegate has questioned whether the DAO retains final control over the market. Compound Foundation said in a Sept. 9 announcement that its Institutional Market runs on Compound v3 and separates selected collateral into a lending pool designed around specific liquidity and risk conditions. Borrowers can use Ether (ETH), wrapped staked Ether, Wrapped Bitcoin, or Coinbase Wrapped BTC to access USDC. The market gives ETH an 87% loan-to-value ratio, while wstETH carries an 85% ratio. WBTC and cbBTC each have an 81% ratio. Each collateral asset has a $10 million borrowing cap. Liquidation factors range from 86% for WBTC and cbBTC to 93% for ETH, while penalties begin at 5% for ETH and rise to 10% for both Bitcoin-backed assets. Compound promoted the product as an institutional-on...