Compound has opened a dedicated institutional lending market accepting ETH, wstETH, WBTC, and cbBTC as collateral against USDC borrowing at loan-to-value ratios up to 87%. The market is described as open to any borrower, with the only permissioned element being access to 200,000 USDC in supplier-side rewards, making the LTV terms effectively a public institutional benchmark rather than a gated product.
For the crypto repo desk, 87% LTV on ETH and BTC from a credible on-chain protocol is the number sophisticated clients will cite in LTV negotiations. Armada's own ETH and BTC haircut policy needs to be benchmarked against this explicitly, and any conservative divergence should be documented with clear risk rationale tied to custody, liquidation mechanics, and no-rehypothecation policy, so client-facing teams can defend the spread.