Compound - An Original DeFi Protocol
Lend + Borrow crypto assets on Compound
What is Compound?
Compound is one of the first DeFi protocols on the Ethereum ecosystem. It launched in 2017. It offers a decentralized loan system where users can lend or borrow an array of crypto tokens. Lenders can get up to 8% APY, depending on the token they provide.
Why does Compound have value?
Compound’s main value is that it provides a decentralized gateway to get loans. Credit worthiness is validated and approved algorithmically, depending on the amount of collateral staked by the borrower. This way, users cannot be rejected or censored by a central authority and don’t need to be pre-approved in order to have access to funds.
What are the benefits of Compound?
● Decentralized and secure loan system.
● High interest rates for lenders.
● COMP holding gives governance rights.
What are the disadvantages of Compound?
● Not available in all markets.
● APY’s have gone down since the bear market started.
What are COMP’s tokenomics?
The maximum supply of COMP is set at 10 million. New tokens are distributed among network participants every time an Ethereum block is mined. 4.2 million of the total supply will go to network users; 2.4 million goes to Compound Labs, Inc.; 2.2 million to the protocol founders and developers; and 775,000 will be distributed through governance incentives.
Who founded Compound?
Robert Leshner and Geoffrey Hayes.
Who are Compound’s investors?
Compound has conducted three funding rounds, raising $33.2 million. Its major investors are Andreessen Horowitz, New Form Capital, Polychain, Paradigm, Bain Capital Ventures, Coinbase Ventures, DHVC, Chapter One Ventures, a16z, and Dragonfly Capital.
Concise Crypto Grade:
B+ :We like Compound for it’s longevity and open-source coding. With all of the centralized lenders that are struggling right now including Blockfi, Celsius, Voyager, and more it is great to see a borrow/lend protocol that is still providing value day-after-day. Compound has been one of the original Ethereum Defi Dapps and we love to see that it has been utilized even through the bear market.
Where can I buy COMP?
Binance, Coinbase, Huobi, FTX, Kraken, KuCoin.
What ecosystem does Compound run on?