Did you know that you can earn interest by lending the cryptocurrencies you hold? Compound is one of the leading platforms that allows you to do that. COMP, the governance token of Compound, is the key to participating in this community. In this article, we will explore this platform in more detail.

What is Compound (COMP)?

Compound is a decentralized money market protocol built on the Ethereum blockchain that allows users to lend and borrow cryptocurrency in a decentralized manner. This platform acts as an intermediary, automatically connecting lenders and borrowers through smart contracts.

COMP is the native token of Compound, used for protocol governance. COMP holders have the right to vote on changes to the protocol. Participants in the Compound ecosystem (lending, borrowing) will receive COMP tokens as rewards.

Highlights of Compound

  • Earn passive income: Users can provide their cryptocurrency into Compound's liquidity pools and earn variable interest. Interest rates are algorithmically determined based on the supply and demand of each asset.

  • Eliminate intermediaries: Operating on the Ethereum platform, Compound allows users to lend and borrow various cryptocurrencies without intermediaries.

  • The operating mechanism is based on liquidity pools: Users provide assets into liquidity pools and receive interest. Borrowers collateralize assets and borrow from these pools.

  • No minimum borrowing or lending requirements: Facilitating participation from more users.

  • Receive interest every Ethereum block: Approximately every 15 seconds, allowing lenders to earn continuously.

Tokenomics

COMP Token Key metrics:

  • Name: Compound

  • Trading name: COMP

  • Platform: Ethereum Blockchain

  • Type: Utility token

  • Contract: 0xc00e94cb662c3520282e6f5717214004a7f26888

  • Total supply: 10,000,000 COMP.

  • Circulating supply: 8,865,065.85 COMP.

COMP Token Allocation:

  • Liquidity mining: 42.3%.

  • Shareholders: 24%.

  • Founders & Team: 22.5%.

  • Community: 7.75%.

  • Future team members: 3.72%.

COMP Token Sale:

The Compound platform has raised a total of $33.2 million through 2 rounds as follows:

  • Seed Equity $8.2 million.

  • Series A $25 million from reputable investment funds such as Coinbase Ventures, Andreessen Horowitz (a16z), Polychain...

Compound's products

Currently, the Compound platform only has a single product, which is lending and borrowing. Users can deposit the cryptocurrencies they own into Compound's liquidity pools. These funds will be lent out to those in need, and the depositors will receive interest. This interest is automatically determined based on the supply and demand mechanism of the market.

Who created Compound (COMP)?

Compound was created in 2017 by two individuals, Robert Leshner and Geoffrey Hayes. Before founding Compound, both worked in key positions at Postmates, an online food delivery application. Currently, they still operate Compound Labs, Inc., the company responsible for developing the Compound protocol. Mr. Leshner serves as the Chief Executive Officer (CEO), while Mr. Hayes is the Chief Technology Officer (CTO).

In addition to his experience building successful companies, Robert Leshner is also known for being very active in the blockchain space. He has invested in many widely recognized cryptocurrency platforms, such as Argent Wallet, Opyn, and Blockfolio.

Current exchange rate of COMP Token

$COMP

#COMP

Where to buy and sell COMP Token?

Currently, COMP tokens are traded on many cryptocurrency exchanges. However, Binance.com is currently the most reputable, safe, and best exchange in the world for buying and selling COMP in particular and coins in general.

For those who haven't created an account on this exchange, you should register for an account right away to start trading.

Binance account registration link & 20% transaction fee discount: https://accounts.binance.com/register?

COMP storage wallet

Wallets supporting COMP storage include:

  • Binance Wallet Chain

  • TrustWallet

  • MathWallet

Alternatively, you can also choose to store COMP on the Binance exchange. Note: Ensure you complete KYC and enable 2FA on your account for safety.

Conclusion

Compound (COMP) has emerged as a key protocol in the Decentralized Finance (DeFi) sector, providing an innovative approach to lending and borrowing cryptocurrencies. By creating liquidity pools and using smart contracts, Compound has automated the process, allowing users to earn interest on their cryptocurrency assets or access loans efficiently.

Despite the risks, Compound has demonstrated its potential to revolutionize how we interact with finance. With the ongoing development of DeFi, Compound continues to play a crucial role in building a more open and accessible financial system.