Crypto lender Dharma, the Ethereum-based peer-to-peer platform, is sunsetting its existing product. It has announced the launch of a closed beta for version 2 of the lending platform.

The new platform will be connected to the Compound. With the Compound Protocol, Dharma will allow instant depositing of stablecoins and the instant earning of interest on those stablecoins. The new Dharma is in closed Beta which implies that it’s only available to existing users of the V1 Dharma product. Dharma Version 2, like version 1, will also enable borrowing and lending at fixed interest rates, although to start, it will only offer lending. Dharma users will tap into Compound’s liquidity pool, rather than offering a platform built on its own proprietary smart contracts. This enables “instant matching”, with lenders earning interest immediately on deposit.

Dharma v2 is not as simple as users engaging with the Compound’s liquidity pool via an intuitive interface. As Compound issues variable loans, Dharma will serve as a middle-man. It will issue interest rate swaps to keep the loans issued via Compound’s liquidity pool fixed at a certain interest rate.

Crypto lender Dharma aims to eventually monetize its platform. The firm will thus do it through origination fees and/or spreads on the swaps. Unlike Version 1, it will not subsidize rates for borrowers and lenders as per the source.