Compound Finance pivots to institutions with $52M budget

Compound Finance approved a $52M budget and revamped leadership to target institutional clients after a sharp TVL drop, shifting focus from retail to institutional growth and partnerships.

Compound Finance, a leader in decentralized lending, has approved a record $52 million budget and restructured its leadership to focus on institutional clients. This strategic shift follows a steep decline in the protocol’s total value locked (TVL), which fell from $12 billion in 2021 to about $1.2 billion, while competitors like Aave expanded. The new leadership team features executives from major financial and crypto institutions. The $52 million budget, approved by COMP holders, will be distributed over two years: $28 million for operations such as engineering and product development, and $24 million for growth, including $8–10 million earmarked for institutional partnerships. Compound’s renewed strategy aims to develop real-world asset offerings, partner integrations, and credit infrastructure that align with traditional finance standards. The protocol’s pivot is designed to attract banks, asset managers, and regulated entities, signaling a move away from retail incentives. Following the announcement, COMP token prices rose over 10%.