Compound
Compound

Compound

Compound is simply a (crypto) peer-to-peer lending and borrowing platform that anonymously connects lenders and borrowers.

Quality Check:

✅ Audited

✅ Active community

✅ Active team

✅ Billions $$ of liquidity

✅ Decentralized, DAO.

Community Links:

👉 Compound website.

👉 Compound twitter.

👉 COMP token.

👉 Compound Founder

👉 Compound Docs

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Why Lend My Crypto? 🤔

  • Earn passive interest on autopilot.
  • Make your crypto holdings earn you money, instead of collecting dust.
  • Use your deposits as collateral to borrow against them, permissionless-ly.

Why Borrow Crypto? 🤔

  • Use your crypto holdings to leverage more buying power.
  • Your collateral earns interest while you borrow other crypto!
  • Lock-in low borrowing APR rates.

How Does It Work?

  • Each asset has 2 sides: borrowers and lenders.
  • Lenders deposit the asset into one big pool.
  • Borrowers can take loans from this pool.
  • Borrowers are OVER-collateralized, so they can't run off with money.
  • Interest rates on deposits are determined by borrow demand.
  • Compound connects lenders and borrowers, anonymously.
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What Is The COMP Token Used For?

  • Voting power in the COMP governance.
  • Staking it for ~6% APY in the safety module
  • The safety module used to cover lost funds via explots, bugs...
  • Can be used as collateral on AAVE, to borrow against.

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What Are The Risks Of Using Compound?

  • Bugs, exploits are always possible.
  • Liquidation of your collateral can happen if you take riskier loans and don't actively manage your loans.

Stand-Out Features?

  • Rewards program for both borrowers and lenders.
  • Borrowers and lenders earn COMP tokens on top of their interest APY.
  • Lenders also earn COMP tokens for taking out loans!