TREE NEWS reports: Compound Finance has approved a record $52 million budget and reshuffled leadership, aiming to revive growth after its TVL fell from $12 billion in 2021 to $1.2 billion. The protocol is pivoting to institutional clients, developing RWA products, partner integrations, and credit infrastructure to meet TradFi compliance standards. This move aligns with the broader DeFi trend of serving traditional financial institutions.
Compound Finance Approves Record $52M Budget, Pivots to Institutions
AI take
Compound's move reflects a broader shift among legacy DeFi lenders: with retail liquidity long gone, the growth path now runs through TradFi balance sheets and compliant credit structures rather than permissionless pools. The leadership reshuffle and record spend signal that the DAO is willing to fund that pivot despite a much smaller TVL base, which puts pressure on execution rather than governance. What matters next is whether institutional and RWA integrations translate into durable borrowing demand, or become another cost center without protocol-level revenue.
Generated by AI for reference only.
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