The new Compound smart contract will be available in Q2, allowing investors to significantly reduce the cost of gas when transferring ERC-20 tokens between different mining pools and the DeFi platform zk.money.

Compound customers can freeze digital currencies in old smart contracts on a landing platform on the Ether blockchain. These digital assets will be migrated to Layer 2 via the Aztec Connect bridge.

Similarly, you can confirm pledges on the ETH version of the smart contract and borrow against the stable coins issued on zk.money. Aztec developers will also be involved in the new project. They have applied for a $100,000 grant in the Compound ecosystem to fund subsidized gas costs for cleanup and loans.

The transition to Level 2 could lead to an increase in TVL investment for the Compound protocol, currently locked at $6.72 billion, and the launch of the new smart contract will certainly raise rates for the COMP service tokens, ranking last in the top 100 ratings.