The DeFi lending protocol shifts strategy after assets locked dropped to $1.2 billion from a $12 billion peak in 2021.
Compound Finance approved a $52 million budget and restructured its leadership to pivot toward institutional clients. The move follows a decline in total value locked, which fell to $1.2 billion from a $12 billion high in September 2021 amid broader DeFi sector weakness.
The protocol, a pioneer in decentralized lending, will develop real-world asset offerings and compliance-focused infrastructure. This aligns with a broader industry shift as DeFi seeks to recover from market downturns and security vulnerabilities that eroded retail interest.
Compound’s new strategy includes partner integrations and credit tools tailored for traditional finance, aiming to attract institutional capital after years of retail-driven growth.