A San Francisco-based decentralized finance protocol called Compound was recently able to raise $25 million USD in its latest Series A investment round. The round was led by Andreessen Horowitz and venture capital funds such as Polychain Capital, Paradigm and Bain Capital Ventures also participated.
Recently, the founder of Compound, Robert Leshner, was interviewed by Fortune. He talked about how the company is set to move forward now that it has these new investments.
The goal of the firm is to start partnerships with exchanges and brokers to expand its business. For instance, a lending unit will be created in partnership with other parties. Leshner believes that cooperation will help Compound as it will make the integration of the new lending features much easier than they were before.
He also spoke about how decentralization is important for Compound. They want to mimic Bitcoin and ensure that nobody, even from the company, is able to influence the protocol used by their platform. This would make it much more transparent and automatized.
This is seen as a vital part of the business model because the creator of the business is very negative on how traditional banks operate and he wants to create something unique and that will cater to all the needs of the clients.
To use the services presented by Compound, a person needs to use ETH as collateral. According to Leshner, most of the investors who are interested in the service are either firms that want to raise a lot of ETH quickly or groups who are interested in investing in ETH in the short-term.