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Charting Compound’s path forward amid Base partnership

3min Read

With Base’s integration, Compound could see an improvement in on-chain activity. However, this depends on a number of factors.

Compound news

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  • Compound has decided to allow lending and borrowing using Coinbase’s L2.
  • If Base’s “on-chain summer” extends for a long while, COMP’s metrics might gain.

Compound [COMP] has become the latest DeFi protocol to hop onto the Base train, according to an announcement on 15 August. Since it gave the public access to its mainnet, BuildonBase, Coinbase’s L2 has experienced an impressive level of growth. 


Read Compound [COMP] Price Prediction 2023-2024


COMP follows the L2 footstep 

In fact, the amount of assets bridged on the protocol is one that the crypto market hasn’t seen for a short while. According to Compound, the availability of Base on the protocol would enable the borrowing and lending of assets including Ethereum [ETH] and Coinbase’s Wrapped Staked ETH.

Before Compound, other projects like Chainlink [LINK] and Uniswap [UNI] integrated with Base. But with Compound’s appearance, what effect will Base have on the open-lending platform?

The first stop is to consider the Total Value Locked (TVL). For context, the TVL measures the health and trust given to a protocol by considering the unique smart contract deposits entering it. And over the last 30 days, Compound’s TVL decreased by 3.88%.

Compound TVL

Source: DefiLlama

This left the value at $2.20 billion. And in turn, implied that liquidity flowing into chains under Compound hasn’t been much. But with Base’s integration, Compound could see an improvement in on-chain activity.

Therefore, this has the potential to change the course of its TVL for the better. Another metric that could be affected by the integration is network growth. Network growth measures the number of new addresses interacting with a network.

When the metric increases, it means new addresses are increasingly making their first transactions. And when it decreases, it implies that a dearth of transfers by new addresses. 

Possible changes and new partners

Over the last 30 days, Compound’s network growth has been decreasing. This means that traction on Compound has not been splendid. But in the coming days, when Base users flood to lend and borrow on Compound III, there could be a positive change in the network growth.

Like the network growth, Compound’s 30-day active addresses had a similar trend. Active addresses show the number of distinct addresses that have participated in a transfer within a given time.

Therefore, the decrease in this metric suggests that participants familiar with the Compound protocol have not really been exchanging assets on the platform. But now, Compound can look to Base to change the status quo.

Compound network growth and active addresses

Source: Santiment


Realistic or not, here’s SUSHI’s market cap in COMP terms


In a related development, SushiSwap’s [SUSHI] head chef Jared Grey confirmed that the project would also support Base.

And as of this writing, the project was already making moves for the integration through Saintbot. For the uninformed, Sanibot helps to deploy and manage fair-launch tokens on Decentralized Exchanges (DEXes) like SushiSwap.

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Victor Olanrewaju is a full-time journalist at AMBCrypto. Settled in Lagos, his fascination with blockchain technology and the cryptocurrency market arose out of his love of freedom and everything free. As a Nigerian, Victor understands the impact unfounded financial restrictions have on a population. He sees Bitcoin and cryptos as a way to circumvent these obstacles, as a tool for value creation despite all the setbacks. A graduate in Physics, Victor previously worked as a Senior Marketer at Melange Technologies. Before that, he dealt with crypto-marketers on a regular basis in his capacity as Copywriter at Ventrix Media. At AMBCrypto, Victor’s focus is on assessing the real effectiveness of both on-chain and off-chain developments on a project and its community sentiment.
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