What is Compound?
Date launched: June 16 2020
Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.
Compound connects lenders and borrowers using a combination of smart contracts running on Ethereum and incentives paid in cryptocurrency.
How to participate?
Compound connects lenders and borrowers using a combination of smart contracts running on Ethereum and incentives paid in cryptocurrency.
The two main users of the platform include:
Lenders – Anyone wishing to lend a cryptocurrency on Compound can send their tokens to an Ethereum address controlled by Compound to earn interest.
Borrowers – Anyone who posts collateral on Compound in the form of a cryptocurrency. They are allowed to borrow cryptocurrencies supported by Compound at a percentage of the posted value.
Compound rewards lenders with COMP tokens based on the amount of Tokens held in their wallet based on a varying interest rate dependent on the available supply of that asset. The more liquidity in a market, the lower the interest rate.
Tokenomics
Max Total Supply: 10,000,000 COMP
Circulating supply: 6,100,000