Compound

Rank

Chain

Ethereum (ETH)

Service

Lending

Social links

Platform Token

Compound (COMP)

Price

$45.47

-6.1 %

Market Cap

$310,629,399

-7.2 %

24H Volume

$89,351,377

compound.finance

Publish: 09/2018

Team is public

No incidents

Audits: 1

Compound is a decentralized application founded in 2018. The project team is public. In the decentralized finance space, this project has passed 1 audit. It has not been involved in any incidents. Compound runs on top of the Ethereum blockchain for fast and secure transactions with crypto assets. The project has its platform token called Compound. The trading volume for 24 hours is $89,351,377.

Users have the ability to contribute their cryptocurrencies to pools which can then be accessed by other users, where providers earn interest on the assets that they bring in. The DeFi Watch platform can be used as a tracker to find the best project pool with high swap fees and yield farming rewards. More details about Compound are available at compound.finance.

Liquidity

Liquidity Pools

Team And Investors

Compound Liquidity

$3,389,957,361

-6.9 %

Active users

292

+3.9 %

What is Compound (COMP)?

Compound is essentially software that runs on top of Ethereum intended to incentivize a distributed network of computers to operate a traditional money market. Compound connects lenders and borrowers through the usage of a combination of smart contracts, all of which run on Ethereum and incentives paid in cryptocurrency. Anyone that wants to lend a cryptocurrency on Compound can send their tokens to Ethereum addresses which are controlled by Compound, where they would earn interest, and anyone who posts collateral on Compound is allowed to borrow cryptocurrencies that are supported by Compound at a percentage of the value posted.

Who are the founders of Compound (COMP)?

Compound's creators are Robert Leshner and Geoffrey Hayes. It all started in 2018, where the company raised $8.2 million in funding from venture capital companies such as Bain Capital Ventures and Andreessen Horowitz. As we move forward to 2019, Compound raised $25 million more from many similar investors. While initially, Compound started without a native cryptocurrency token, it moved to on-chain governance with the introduction of the COMP token, which occurred in 2020, and even created its own Compound Chain, which truly brought all of this together.

What makes Compound (COMP) unique?

The main way through which Compound (COMP) is unique is that it rewards lenders with the COMP tokens, based on the number of cTokens that they are holding in their wallets. This is based on a varying interest rate, which is dependent on the available supply of that asset in question. The more liquidity the market has, the lower the interest rate becomes as a result of that. Additionally, the users that lend assets can take out a loan in any other cryptocurrency that is on offer at Compound up to the amount of collateral they have posted. Borrowers can get liquidated if the asset they borrow increases in value up to a point where it becomes more valuable than the collateral.