What is compound? Compound (COMP) is a DeFi-focused Blockchain project that allows users to earn on interest. In this article, you can find answers to questions such as what is Compound, what it offers, what is COMP coin, how to get it, what is it used for. As Kriptokoin.com, we have prepared it for our curious readers. Let’s examine the project together.
What is compound?
Launched in 2018, Compound is a DeFi-focused Blockchain project built on the Ethereum blockchain. The native cryptocurrency of the project is COMP coin. The DeFi-focused project works as a lending protocol. Users can borrow and lend through the protocol. Users who lend through liquidity pools can earn interest. Users of the platform can access and use open access smart contracts. The protocol, which has a decentralized and distributed structure, is managed by the community.
Compound aims to gather users who lend and borrow cryptocurrencies under one roof in the DeFi field. The interest rate that the borrowers will pay and the lenders will receive within the platform are determined according to some criteria. At the beginning of these criteria is the supply-demand balance of the asset borrowed. The interest rates are updated in each new block formed on the protocol. Users can access liquidity pools created for credit, supporting many cryptocurrencies within the network. Users receive cTokens when they deposit their tokens into a pool. cToken refers to the individual’s share of the loan pool and assets deposited in the pool can be used at any time.
What is COMP coin? What is it used for?
COMP coin is the native cryptocurrency of the Compound network. The token, whose maximum supply is limited to 10 million, was created with an ERC-20 smart contract on the Ethereum Blockchain. COMP is a non-minable asset. The only way to get the token is through the platform. Cryptocurrency has various use cases within the network, such as governance and incentives. COMP coin holders can participate in the management of the platform. This includes features such as voting on decisions taken, presenting proposals to the community, and discussing proposals.
Every day, the platform distributes 2880 COMP coins based on the number of transactions made by token holders. Even the rewards of a user who wins 0.001 COMP are instantly credited to their account. At the time of writing, COMP coin was the 84th largest cryptocurrency with a market cap of around $966. Besides, 6.7 million COMP was in circulation, which corresponds to 67% of the token’s maximum supply.
How to get COMP coin?
Users who want to buy COMP coin must first find a cryptocurrency exchange that lists the token. These exchanges include Binance, Bybit, Tokocrypto, FTX and OKEx. Investors interested in the Compound project can purchase the token by signing up for one of these exchanges and depositing money in their wallets.
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