Compound (COMP) is a cryptocurrency and decentralized finance (DeFi) project built on the Ethereum blockchain.
It is designed to provide users with the ability to borrow and lend various cryptocurrencies in a decentralized and permissionless manner. Users can supply cryptocurrencies to the Compound platform to earn interest (lenders) or borrow assets by collateralizing their holdings (borrowers).
Interest rates on the Compound platform are algorithmically determined based on the supply and demand for specific assets. Rates can change in real-time, offering dynamic earning potential for lenders and varying borrowing costs for borrowers.
Compound initially supported popular Ethereum-based assets like Ether (ETH) and stablecoins like USDC and DAI. Over time, it has expanded to support various other assets, including a wide range of ERC-20 tokens.
COMP is the native governance token of the Compound protocol. COMP token holders have the ability to propose and vote on changes to the protocol, including adjustments to asset interest rates and other protocol parameters.
Compound has employed liquidity mining programs in the past, where users who supply or borrow specific assets can earn COMP tokens as rewards.
Disclaimer. This article is for informational purposes only and should not be viewed as an endorsement by CoinIdol. They are not a recommendation to buy or sell cryptocurrency. Readers should do their research before investing in funds.
Source: https://coinidol.com/compound-comp-token/
