Securely Bringing DeFi to Institutions

Daniel Katzan
Jul 16 · 4 min read
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Today, we proudly announce support for Decentralized Finance (DeFi) within Curv’s infrastructure via an integration with Compound. Institutions no longer need to let their digital assets sit idly without yielding interest. Curv’s integration changes this by providing organizations with the ability to earn money via a Compound interest rate protocol on the Ethereum blockchain. Clients can, therefore, securely interact with the growing DeFi market and Curv will ensure these institutions can execute on their desired DeFi practices using an enforceable governance structure.

Compound: The DeFi Market Leader

There has been over $2B invested across a myriad of DeFi protocols, representing a 240% YTD growth. Across this growing cohort of players, Compound leads with over 40% of the total value locked into its protocol. Recently, Compound broke a billion dollars in total assets borrowed. This milestone solidifies the company’s leadership in the DeFi market and identifies Compound as the go to place to park assets in order to earn the strongest returns.

Institutions Seeking to Access DeFi

As a result of broader growth in the DeFi market, several clients expressed interest in accessing Compound via their Curv wallet. Before Curv’s integration, most DeFi deployments were retail oriented. Institutions were limited in their ability to interact with smart contract protocols and were more often than not forced to use other tedious workarounds to do so.

“Our growing list of institutional clients, including exchanges, custodians and asset managers, have all turned to Curv to secure their digital assets and support their adoption of new financial products in the digital economy. We’re excited to integrate Compound and simplify the experience so that we can make DeFi secure and accessible to an institutional audience,” said Itay Malinger, Curv’s Co-founder and CEO.

DeFi Governance Control

From Curv’s perspective, institutions should be afforded the same enterprise level of security and governance controls over their interest rate protocol as they do with the assets managed and stored on Curv’s platform. Curv’s Compound integration is secured via Curv’s MPC protocols on a keyless platform, ensuring no single point of failure and offering the ability to enforce a policy mechanism that controls exactly who, how and to what extent any individual at an institution can supply and redeem assets on Compound.

“Curv is a leading custodial technology player focused on serving the institutional community. Their integration is an exciting advancement in expanding enterprise-grade access to and ownership of the Compound protocol,” said Robert Leshner, Founder and CEO of Compound.

How it Works

To supply assets on Compound, an institution requires a wallet (and digital assets, of course). Curv’s integration with Compound allows institutions to earn interest programmatically through Curv’s API or via Curv’s user interface. Digital assets are supplied to Compound from a Curv wallet in exchange for Compound cTokens stored within a Curv wallet as well. Those cTokens can at any time be redeemed through the Compound protocol and reverted into the original digital asset along with the earned interest rate.

Determined by their institution’s preferences and appetite, operations teams can take any range of assets and supply them to Compound via the integrated smart contract. Their ability to do so is securely configured using Curv’s authorization layer and enforced on each transaction.

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The Compound Effect

For Curv, our Compound integration is yet another integration of many more to come as part of our growing security infrastructure. Earlier this month we announced our integration with Elliptic, bringing crypto compliance to the next level — allowing clients to determine their risk profile and preferences in real-time while also maintaining control by programmatically setting risk parameters. With our newest Compound integration, institutional clients can now grow their footprint in the DeFi market and do so in the secure and scalable fashion which they are already accustomed to with Curv. This and other offerings have been critical to our work with the traditional market segment and we will continue to deliver innovative solutions to meet their needs.

Why should my team use Curv’s Compound integration?

  1. Meet institutional DeFi requirements — Leverage Curv’s Compound integration to earn interest on idle funds and do so through Curv’s wallet interface or programmatically via Curv APIs in accordance with your institutions established and enforced preferences using our authorization layer
  2. Save cost and time — Streamline your DeFi operations by seamlessly integrating with Compound smart contract and avoiding previously used unnecessary and timely workarounds
  3. Enhance regulatory compliance and reporting — Automatically export a crypto transaction audit log with your Compound supply and redeem transaction details to improve reporting and transparency
  4. Seamless integration — Your IT teams do not need to build out a separate and customized integration with Compound. Get up and running with Compound instantaneously with Curv

Click here to unlock DeFi for your institution and register for a demo of Curv’s Compound integration.

Curv

The Institutional Standard for Digital Asset Security

Daniel Katzan

Written by

Backend Software engineer, helping build Curv’s security infrastructure. Securing the world one signature at a time💪

Curv

Curv

The Institutional Standard for Digital Asset Security

Daniel Katzan

Written by

Backend Software engineer, helping build Curv’s security infrastructure. Securing the world one signature at a time💪

Curv

Curv

The Institutional Standard for Digital Asset Security

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