- Category:Yield Farming
- Coin Launched: June, 2020
- Resources: White Paper
- Official Website: Compound
- Reddit: Compound
COMP is the governance token for Compound Protocol and it was distributed since June 2020. It is an ERC-20 token issued on Ethereum. COMP tokens are mainly used for protocol governance.
COMP holders can suggest, debate, and implement.
COMPOUND History / Information / Buying / Staking
Compound. COMP is an ERC-20 token that was launched on the Ethereum blockchain in 2018. This is a coin of Compound Protocol, a money market protocol where interest rates are generated algorithmically based on supply and demand. COMP tokens give governance over the protocol to users.
HOW COMPOUND WORKS
Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. Lenders then earn interest on the assets they deposit. Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender.
BENEFITS OF USING COMPOUND
Some of the benefits of using Compound are:
Anyone with crypto can open an account and get monthly returns for investing. Since the interest compounds annually, lenders have a source of passive income.
COMP tokens power the Compound interest platform. This makes it a community-oriented crypto project where the community holds decision-making powers.
All transaction data on the Compound protocol is immutably recorded on-chain. The robust security audits ensure safety as well.
CAN YOU STAKE COMPOUND
Compound enables you to deposit your crypto coins or tokens into a pool that borrowers can access. You earn an interest on all the assets you deposit on this protocol. This decentralized finance (DeFi) system then rewards you with a cToken, a special crypto that represents your deposit.
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