Compound is a decentralized lending protocol on the Ethereum network. The platform allows you to put your coins into good use— depositing them in a pool to accrue yields over time.
Anyone can deposit a token into a lending pool to earn returns. At the time of writing, the platform supports sixteen crypto assets, including Ether (ETH), USD Coin (USDC), and Uniswap (UNI). Pool interest rates are calculated algorithmically based on demand and supply. After depositing a token, you receive cToken to represent your stake in the pool. For example, suppose you deposit ETH, you will receive cETH, and over time, your cETH’s value increases depending on the interest rate. You can exchange your cETH for ETH at any time. You also accrue COMP— the platform’s native token.
On the other end of the protocol’s use case is borrowing. Suppose you need some extra money to fund a project, and selling your crypto isn’t a favourable option; you can borrow from a lending pool using your crypto as collateral. Keep in mind you can only borrow a percentage of your collateral (typically 50-75%). If your collateral value falls below the loan-to-value ratio, your collateral will be sold to repay the loan.
COMP is Compound’s governance token. Holders of the token can suggest and vote on key changes to the protocol, including interest rates and LTV ratios, etc.
Find the latest COMP price and chart on our website.
You can easily buy COMP with fiat or other cryptocurrencies on YouHodler.
Earn interest on your COMP. Create a savings account with YouHodler, buy and deposit COMP, and watch your stash accrue returns.
Borrow stablecoins with your COMP at a cheap interest rate.
Earn more COMP by using our multi-hodl strategy at YouHodler.
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