Compound stress test: the total borrowing size can be expanded tenfold, and the probability of default is less than 1%

According to CryptoGlobe, a stress test commissioned by DeFi startup Compound showed that it can increase the total borrowing size by 10 times without significantly increasing the risk, and the probability of default is less than 1%. This test was performed by the blockchain simulation platform Gauntlet Networks. Through various stress tests on Compound's decentralized lending protocol, it replaced the user's interaction with the protocol and determined how its mechanism would be maintained. The results show that "statistically important evidence shows that even if ETH achieves its maximum historical volatility, the Compound system can still increase the total borrowing value by more than 10 times and the probability of default is less than 1%. Therefore, our conclusion Yes, the Compound protocol can be expanded to a larger scale and can handle high volatility scenarios for a variety of collateral types. "