Institutional Market
The Compound Institutional Market is a new instance of Compound V3 designed for larger, institutional borrowers and lenders.
Like other Compound V3 markets, it uses a single borrowable base asset, which is USDC - with selected assets available as collateral. However, this market offers higher borrowing limits, more capital-efficient risk parameters, and a carefully selected collateral set.
The market initially supports ETH, wstETH, WBTC, and cbBTC as collateral.
How does it differ from other Compound markets?
The Institutional Market uses the same Compound V3 smart contract architecture, but has its own liquidity and risk parameters.
Its main differences include:
Higher maximum LTVs, allowing users to borrow more USDC against the same amount of collateral.
Higher liquidation thresholds, giving positions additional room before they become eligible for liquidation.
A curated collateral list limited to ETH, wstETH, WBTC, and cbBTC.
Dedicated institutional support, including market updates, protocol-change notifications, and a direct point of contact.
For comparison sake - let's compare the regular v3 USDC market and the Institutional USDC market.
Institutional USDC market:
ETH
87%
93%
wstETH
85%
92%
WBTC
81%
86%
cbBTC
81%
86%
Regular USDC market:
ETH
82.5%
88%
wstETH
82%
86%
WBTC
80%
85%
cbBTC
80%
85%
These parameters offer greater capital efficiency, but using the maximum available LTV leaves a position close to liquidation. As such, we recommend using DeFi Saver's automation tools for managing your borrow position.
Incentives for DeFi Saver users
DeFi Saver users can access a separate pool of 20,000 USDC in exclusive incentives from Compound, distributed over the market’s first three months.
To lend or borrow in the institutional market, head over to DeFi Saver's Compound V3 dashboard.
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