Compound Fork

Definition ∞ A Compound Fork denotes a modification or divergence from the original Compound DeFi protocol. This typically occurs when developers alter the protocol’s code, creating a new version with distinct features, parameters, or governance rules. Such forks can lead to new lending and borrowing markets operating independently from the primary Compound system. These new iterations aim to innovate or address specific community needs without disrupting the existing protocol.
Context ∞ The landscape of Compound forks demonstrates ongoing experimentation within decentralized finance, with many projects building upon its open-source framework. A key discussion point involves balancing innovation with security, as new forks introduce additional risks. Future developments will likely witness further specialized forks, each targeting niche financial services or specific blockchain networks.