Compound (COMP)
Official Website: https://compound.finance/governance/comp
What is Compound?
Compound was launched as a DeFi lending protocol that enabled users to receive interest on their cryptocurrencies by depositing them into one of the numerous pools that are supported by the platform.
Once the user deposits their tokens to a Compound pool, they will begin to obtain cTokens in return. The cTokens are representative of the person's stake in the pool and also be redeemed for the underlying cryptocurrency initially deposited into the pool at any time. For example, if you were to deposit ETH, you will receive cETH in return. The exchange rate of these cTokens to the underlying asset increases over time. Because of this, you can redeem them for more of the underlying asset than you originally put in, this is how the interest is allocated.
Alternatively, borrowers can take a secured loan from any Compound supported pool by depositing collateral. The limit on the loan-to-value (LTV) ratio fluctuates depending on the collateral asset being deposited, however it ranges from 50 to 75% currently. The interest rate paid depends on the borrowed asset while borrowers can also face automatic liquidation if the collateral they deposited drops below a specific maintenance threshold. Since the launch of the Compound mainnet, the platform has increased rapidly in popularity while also recently passing more than $800 million in total locked value.
Team
Founded back in 2017, Compound was created by Robert Leshner and Geoffrey Hayes, both of whom formerly worked as high-profile employees at Postmates, which is well known online food delivery service. The two still maintain executive positions at Compound Labs, Inc which operates as the software development firm behind the Compound protocol. Leshner currently serves as CEO, while Hayes is the CTO.
Although both of the founders of Compound have had significant involvement in the founding of successful companies, Robert Leshner has been especially involved in helping to develop the blockchain space. He has openly invested in popular crypto platforms including Argent Wallet, Opyn, and Blockfolio. The Compound team now includes numerous individuals, almost half of which work as engineers.
Roadmap
October 2019
The Compound team decreased the administrative benefits to make rapid changes by:
• Replacing the administrator contract with a timelock function
• Adding a Pause Guardian to the protocol
April 2020
The administrator of the protocol was switched for a community governance protocol which means all changes have to come from COMP holders, which were shareholders of Compound Labs, Inc.
June 2020
Tokens reserved for users of the platform (42% of total) started to be allocated linearly over the next four years.
Where to Store Compound (COMP)
You can store your Compound in Exodus along with various other cryptocurrencies. Exodus is free and easy to use and can be downloaded to either a desktop or mobile device. Exodus will then be tied to whichever device it has been downloaded to which will also be the device you will use to access and manage your crypto assets.
Trust wallet is a wallet that can hold a wide variety of cryptocurrencies such as Compound making it highly desirable for users who wish to have a varied portfolio. Being owned Binance, it also a very trusted wallet in the crypto community.
Leading hardware wallet providers such as Ledger are integrated with Compound and COMP wallets will come as standard on their devices.
Where to Buy and Sell Compound (COMP)
You can Buy & Sell Compound (COMP) by heading over to the Buy Coins page of our website. Compound (COMP) is available on BC Bitcoin trading against major fiat currencies: GBP and EUR. Buying Compound has never been easier, simply place your order and provide your wallet address.
Once your payment arrives Compound will be sent directly to your wallet. If you choose to Sell Compound (COMP) you can send us the coins and receive a payment to your bank account. Details and valuation can be found on the ‘Sell Coins’ page.
Compound (COMP) Resources
Website: https://compound.finance/governance/comp
Block Explorer: https://etherscan.io/
Twitter: https://twitter.com/compoundfinance
GitHub: https://github.com/compound-finance/compound-protocol
Disclaimer: The information provided in this article is intended for informational purposes only. It is the readers responsibility to complete their own research and due diligence.