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Learn more about Compound
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Compound (COMP) price has increased today.
Compound (COMP) is priced at $55.90 today, with a 24-hour trading volume of $27,197,649.21. It is reflecting a 1.00% increase over the last 24 hours and a 0.70% increase over the past 7 days. With a circulating supply of 8.11 Million COMP, Compound’s current market cap is at $453,421,844.48.
Understanding Compound (COMP)
Compound gives users a way to earn interest on their cryptocurrencies. Simply, it’s a decentralized finance (DeFi) platform where you can lend or borrow cryptocurrencies.
When you deposit tokens into a Compound pool, you get cTokens back. These cTokens show that you have a share in that pool and can be swapped back for the original cryptocurrency whenever you want.
For instance, if you deposit ETH, you’ll get cETH and as time passes, your cETH can be worth more than your original deposit.
Borrowers use these pools too, by providing collateral to take loans. They pay interest, and their loan limits depend on what kind of collateral they’ve used.
If the value of their collateral drops too much, they might have to pay back part of their loan early to avoid penalties.
Since starting in 2018, Compound has grown a lot and now has over $800 million in total value locked into its platform.
Meet the Founders of Compound
Robert Leshner and Geoffrey Hayes founded Compound in 2017. They both had big roles at Postmates, a food delivery service, before this.
Now, Leshner is the CEO and Hayes is the CTO of Compound Labs, Inc., which is the company that develops Compound.
Leshner has invested in other crypto platforms like Argent Wallet and Blockfolio. The Compound team, which is more than a dozen people strong, is largely made up of engineers.
What Sets Compound Apart?
Lots of cryptocurrencies don’t do much while they sit in exchanges. Compound offers a solution by letting people earn interest on their idle tokens or take out loans using them.
A special thing about Compound is its community governance. If you hold COMP, Compound’s own token, you can suggest changes, debate, and vote on decisions for the platform without the team being involved.
How Many COMP Coins Are in Circulation?
The total number of COMP tokens stands at 10 million, with about 8 million currently in circulation.
Various parties share these tokens: users, the shareholders of Compound Labs, Inc., the founders, the current team, and future team members.
Additionally, some are reserved for community incentives. Over the next four years, users will receive 4.2 million tokens.
Moreover, COMP holders can vote to change the distribution rate of COMP tokens in the future.
How Does Compound Ensure Network Security?
Compound relies on smart contracts to manage its platform and ensure its security. These contracts mint cTokens whenever users deposit assets and diligently track everyone’s stakes in the pools.
Every supported asset needs to maintain a certain collateralization factor for safety. If it dips too low, a sale of some of it helps to stabilize the situation and repay any loans.
Consequently, this approach not only safeguards borrowers and lenders but also provides opportunities for liquidators to reap rewards.
Where Can You Purchase Compound (COMP)?
You can buy COMP on many cryptocurrency exchanges like:
Most Used
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Coinbase is one of the largest crypto exchanges in the world and a widely-used platform for buying, selling, and trading over 200 cryptocurrencies. It offers trading solutions for beginner, advanced, and institutional traders alike. Take a look at what makes it an excellent option for individual traders looking to trade in cryptocurrencies and beyond.
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Simply, Compound allows users to earn interest on cryptocurrencies through a decentralized finance platform where they can lend or borrow tokens.
Robert Leshner and Geoffrey Hayes founded Compound, and they formerly worked in significant roles at Postmates.
When you deposit tokens into a Compound pool, you receive cTokens, which grow in value over time, allowing you to earn interest.
A distinct feature of Compound is its community governance, where COMP token holders can suggest and vote on platform decisions without the team’s participation.
You can purchase COMP tokens on various cryptocurrency exchanges, such as Binance and Coinbase.
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