In a major change in leadership, Compound Foundation announced a total leadership overhaul of its management structure. According to the foundation, four executives joined the protocol’s management structure as part of its targeted expansion.
According to the report, Aaron Schnarch will take over as Executive director, and Christopher Donovan as the COO. Furthermore, Leo Eikelman takes over as Chief Tech Officer, while Steven Liu will be the CPO.
These appointments mark the largest leadership shake-up in the crypto industry over the past year. These changes are aimed at making Compound [COMP] a competitive asset.
Compound DAO deploys $52M for DeFi expansion
In addition to the leadership shake-up, Compound DAO approved a major development fund of $52 million. The budget allocated $28 million to operations and $24 million to project growth over the next two years.
As per the reports, the $28 million will entail fields such as risk, marketing, and engineering. Moreover, the projects will seek the development of Compound V4. Additionally, $14 million was allocated to the foundation’s multisignature wallet. This major investment comes as Compound attempts to regain market share in the highly competitive lending market.
As such, the foundation hopes that institutional credit could offer a new growth path. With significant funds dedicated to the development of V4, the project wants V4 and institutional products to bridge the gap between DeFi and TradFi. Even more importantly, the investment reflects a broader transformation across the DeFi sector.
How did COMP price react?
With the news, COMP made some gains on the price charts, rising to $18 before slightly retracing. With the price hike, the altcoin flipped its 20, and 50-day EMAs, indicating short-term upside momentum.
At press time, Compound was trading around $17.6, up 8.6% on the daily charts. Over the same period, altcoin’s trading volume surged over 648% to $43 million, indicating strong market participation.
Fresh market demand mostly drove the market activity as the Exchange Supply Ratio (ESR) crashed to a three-month low of 0.12.
Low ESR implies more COMP has flowed out of exchanges. Often, higher outflows strengthen upside momentum, leading to more gains.
In fact, the altcoin’s Relative Strength Index (RSI) has been on a strong upward trajectory, rising to 65. At this level, the indicator suggests that buyers are active.
Typically, such a market setup, if sustained, precedes more gains on the price charts. Therefore, if this demand holds, Compound will close above $18 and target $20.
Final Summary
- Compound announced a total overhaul in leadership structure and approved a $52 million development budget.
- COMP broke out, surged to $18, then slightly retraced to $17.