What Is Compound?
Compound is a software that runs on the Ethereum blockchain and incentivizes a distribute network of computers to operate a money traditional grocery store .
In early words, Compound allows users to deposit their cryptocurrency into lending pools which are then accessed by borrowers. The lenders can earn interest on the assets they deposit as a solution.
once a deposit is made, then Compound will award a new cryptocurrency known as a cToken. This cToken represents the deposit to the lender .
Every one of these tokens can then be transferred or traded without any restriction ; however, it is only cashable for the cryptocurrency, which is locked within the protocol .
You can think of it this way : compound connects lenders and borrowers through the custom of a combination of smart contracts, all of which run on Ethereum and incentivizes their users through cryptocurrencies .
There are two independent types of users that are confront on the platform, including the Lenders, which is anyone that intends to lend cryptocurrency on Compound and can send their tokens to an Ethereum-based wallet which is controlled by compound with the purpose of earning concern .
then you have the Borrowers, which is anyone that ends up posting collateral on Compound in the form of a cryptocurrency. They are then allowed to borrow cryptocurrencies that are supported by Compound at a percentage of the measure which is posted .
The lenders are then rewarded with COMP tokens which are based on the numeral of the aforesaid cTokens which are held in their wallet based on varying degrees of interest rates, all of which are dependent on the available provide of the asset in question. The more liquidity the commercialize has, the lower the interest rate ends up being as a solution .
Compound Founders
The founders of Compound Protocol include Robert Leshner and Geoffrey Hayes, both of whom worked roles at Postmates, which is an on-line food pitch service. To this day, they continue to hold eminent positions at Compound Labs, Inc .
Robert Leshner presently holds the function of CEO .
Geoffrey Hayes presently holds the function of CTO .
Both of the founders have know in launching successful companies. however, Leshner has been active voice in growing within the blockchain space and has invested in popular crypto platforms such as Opyn, Argent Wallet, and Blockfolio .
How Does COMP Work
When it comes to Compound ( COMP ), a high share of the tokens actually remain idle within commute platforms without doing much for their holders. All of this shifts the compound price based on how the compound protocol is structured here .
Compound ( COMP ) is attempting to change this through an overt lend platform that allows anyone to deposit supported Ethereum tokens to earn interest on their balance or take out a procure loan. This is all done through trustless means, which allows for an low-cost compound price .
The community government sets it apart from other protocols where the holders of the chopine ‘s native token COMP can propose changes to the protocol and argue adenine well as vote on changes that are suggested by others without involving the team behind the project at all .
This includes things such as picking what cryptocurrencies to add support for a well as adjusting the collateral factors and making changes to how the COMP tokens are distributed. The COMP tokens can then be bought from any third-party rally or be earned through the Compound Protocol by depositing assets or taking out loans .
Another noteworthy thing here is the fact that a COMP holder can actually assign their vote rights to person else to vote on their behalf, and what this means is that person who is n’t a COMP holder can be asked to vote on behalf of the COMP holder on a specific write out, specifically person with a higher floor of expertness on the field .
What you need to keep in beware, adenine well as the fact that Compound borrowers can get liquidated if the asset they end up borrowing increases in value and becomes a batch more valuable than the post collateral at the time of their post .
Users that lend assets within the protocol besides have the opportunity to take out a loan in any other cryptocurrency which Compound offers and up to the sum of the collateral which is posted .
Where Can You Buy COMP
Compound has a total supply of 10,000,000 .
If you want to buy, sell or trade COMP, you can do so on exchanges such as Binance Futures, Binance, OKEx, BitZ, and Coinbase Pro. note that due to the nature of the compound protocol, the compound price will shift and change over fourth dimension .
It is not dictated by the compound team nor the compound bright contract, but it works through the compound network using a compound pool. In this pool, crypto assets are distributed from lenders to borrowers, who use the comprehensive examination token as a collateral asset in money markets. The liquidity pool allows users who have borrowed assets to earn on their digital assets in the phase of a comprehensive examination token. This borrowed asset is a cardinal of decentralized finance for comprehensive examination holders on their crypto wallet, where they receive cTokens .
