What is Compound?
A protocol for DeFi lending, Compound permits its users to get interest on cryptocurrencies. Earning interest involves placing tokens into one of the platform-supported pools. After a deposit, the user receives cTokens.
What are COMP Tokens?
COMP is the governance token of Compound. With tokens, you can suggest changes to the protocol, debate on changes, and vote on changes. The Compound team doesn't get involved in this. Token owners can choose cryptocurrencies to add to the platform as well as how to change the token distribution. You receive tokens by buying them through third-party exchanges or by taking out a loan or depositing assets.
More About Compound
Once you have cTokens, you can use them to redeem your original cryptocurrency. But while you have the cTokens, they show your stake in the pool. If you deposit ETH into one pool and then pull it out, you will receive cETH back. When you pull out the cTokens, you could see an increase in asset price—the exchange rate of cTokens increases over time.
You could also opt to take out a secured loan from a pool. First, you deposit collateral into a Compound pool. The loan value depends on the collateral, but the loan-to-value ratio is typically around 50% to 75%. If your collateral drops below a certain threshold, your assets will be liquidated.
One of the more popular platforms, Compound reached over $800 million in locked value as of October 2020. In 2017, Geoffrey Hayes and Robert Leshner founded the platform. Leshner has played a crucial role in Growing blockchain, which has contributed to the success of Compound.
The Uniqueness of Compound
Most cryptocurrencies remain stagnant. But Compound changes that. It's an open lending platform that gives users the chance to earn interest or take out a loan. As such, Compound is unlike any other protocol. The COMP tokens are equally unique.
What are Compound Frequenty Asked Questions?
Where does Compound (COMP) rank among in terms of popularity? How relevant is it compared to competitors?
In terms of popularity, Compound currently ranks in position 93 out of the thousands of cryptocurrencies. It is also important to consider Compound‘s market cap – in general, the higher the market cap of a cryptocurrency, the more dominant it is considered to be in the market. Compound has a market cap of $ 428,031,529, which compares to Bitcoin (the most popular cryptocurrency by several metrics) with a market cap of $ 374,281,069,430, Litecoin at $ 3,835,989,976, Ethereum at $ 160,951,844,466, Tether at $ 67,947,813,917, and XRP at $ 24,149,269,201.
What is the price of Compound (COMP) today (updated in realtime)?
The current price of Compound is $ 62.44 in USD. (The price in Euros is 64,32 €; and the price in Bitcoin is Ƀ 0.00319545 BTC.)
What is Compound‘s (COMP) market supply?
The total available supply of Compound is 6,856,086 COMP. The total supply of Compound is 10,000,000 COMP.
What is the 24 hour volume for Compound (COMP)?
The 24 hour volume for Compound is $ 32,348,807.
How has Compound (COMP) performed recently?
Compound‘s price has increased in the last 24 hours by 0.52%. This compares with a seven day change of 9.76%. The trading volume over the last 24 hours was $ 32,348,807. Trading volume indicates how many units of a currency are being bought and sold on specific exchanges. High trading volumes are likely to drive more on-chain activity, for example when people deposit and withdraw funds. It can be a good indicator of the general interest in the cryptocurrency.
What is Compound (COMP) official website?
Links to Compound‘s official website, social accounts, blockchain explorer, and Github repository if applicable.
Has Compound (COMP) performed well historically?
Here is a chart showing how Compound has performed historically.
Where Can I Buy Compound (COMP)?
Here is a breakdown of the current market prices from top cryptocurrency exchanges.
Charts & Market Data
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