Compound (COMP)

Algorithmic money markets. Earn interest on crypto.

What is Compound?

Compound is a decentralized lending protocol that lets you earn interest by supplying crypto assets, or borrow against your crypto holdings. Interest rates adjust algorithmically based on supply and demand — no human intervention, no bank approval, no credit check.

Compound was one of the pioneers of DeFi, launching in 2018 and introducing the concept of algorithmic interest rates to crypto. It also pioneered governance token distribution — COMP was the first major token distributed to protocol users, kickstarting the "DeFi Summer" of 2020.

COMP is the governance token that gives holders voting power over the protocol. This includes adding new assets, adjusting risk parameters, and controlling the protocol's treasury. Compound III (the latest version) simplified the protocol to focus on single-asset borrowing for better risk management.

How Compound Works

Compound is like an automated savings account and loan desk combined. Lenders deposit crypto into shared pools and earn interest that updates every Ethereum block (about every 12 seconds). Borrowers put up collateral and take out loans from those pools. Interest rates move automatically — when lots of people want to borrow and the pool is running low, rates go up to attract more lenders. When the pool is full, rates drop. No humans decide the rates. COMP holders govern the rules of the system.

Compound Ecosystem

Algorithmic lending and borrowing across major crypto assets
Compound III — simplified, single-asset borrowing model
Governance through COMP voting on protocol parameters
Pioneer of DeFi governance token distribution
Deep integration with other DeFi protocols and aggregators

Team & Development

Compound was founded by Robert Leshner and Geoffrey Hayes in 2017. Leshner, a former economist, has been a prominent voice in DeFi regulation and policy. Compound Labs developed the protocol, which is now governed by COMP token holders. The company raised $33 million from Andreessen Horowitz, Bain Capital Ventures, and Coinbase Ventures.

Frequently Asked Questions

How do I earn interest on Compound?

Supply supported assets (like USDC, ETH, or WBTC) to Compound's lending pools. Interest accrues automatically based on market demand. You can withdraw your assets plus earned interest at any time.

What is COMP used for?

COMP is the governance token for the Compound protocol. Holders can propose and vote on changes to the protocol, including adding new assets, adjusting parameters, and allocating treasury funds.

Where do I store COMP?

COMP is an ERC-20 token on Ethereum. Store it in MetaMask, Trust Wallet, Ledger, or any Ethereum-compatible wallet.

Can I sell or swap COMP?

Yes. Swaps supports selling COMP for fiat and swapping it for other tokens.

Buy Compound on Swaps

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