9.8 C
New York
Sunday, October 24, 2021

Compound your Earnings – Compound (COMP)

In the traditional banking system, people deposit fiat currencies to their accounts and earn interest based on what they have deposited. These interest rates vary according to the amounts you have locked and the bank that you have chosen. The same scenario now exist in the world of blockchain. Different projects came into existence to allow borrowing and lending of cryptocurrencies with a specific interest rate that vary from project to project. Compound is one such project that allows the borrowing and lending of cryptocurrencies.

What is Compound?

Compound was launched in 2018, it is a dApp that works on Eth blockchain. It is a lending platform where users can deposit cryptocurrencies in specific pools and earn interest on that. Assets are locked and the interest (compound interest) starts to built up based on the amount that you have locked. This allows the users to have gains that are respectable in size. Just like explained above, the process is very similar to the traditional banking system but the process is decentralized and peer to peer removing the need for central authority.


3 Tiny Stocks Primed to Explode The world's greatest investor — Warren Buffett — has a simple formula for making big money in the markets. He buys up valuable assets when they are very cheap. For stock market investors that means buying up cheap small cap stocks like these with huge upside potential.

We've set up an alert service to help smart investors take full advantage of the small cap stocks primed for big returns.

Click here for full details and to join for free

Sponsored


Lenders deposit their assets into the pool and borrowers borrow from it. Eventually the ones who borrowed would have to return including the interest which is then distributed among the ones who provided the liquidity in the first place. The lenders receive cTokens relative to the amount that they have deposited that act as a contract and can be used to redeem the amount that they have provided in the first place. The exchange rates of these cTokens also increases and a result the people can withdraw more than they have provided in the first place based on the interest that they have gained as a reward. Platforms like AAVE, MAKER, DEX are in direct competition since they all provide this project.

The Native Token

COMP is their native token that allows governance votes to its holders and hence allows them to propose changes to the platform. COMP can be bought from quite a number of exchanges including Binance, Huobi, FTX, CoinBase.

Tokenomics and Current Price movement

According to coinmarketcap COMP is listed at 58th according to marketcap and dominance of 0.10%. At the time of writing COMP is being traded at the price of $329.50 with a decrease of about 2.24% in the past 24 hours. It has a circulating supply of about 5.5M coins with a total of 10M coins.

Related Videos

Latest news

Related news

Related Videos

LEAVE A REPLY

Please enter your comment!
Please enter your name here

SPECIAL GIFT

WE HAVE A GIFT FOR YOU

Download Free eBook For

7 GROWTH STOCKS FOR 2021

644

100% free. stop anytime no spam