Category: Lending & Borrowing
Recommended Capital: $500+
Time To Set Up: 15 mins
Earn Rewards: COMP Token
- This is the Compound app's native token.
- You get COMP tokens ON TOP of your deposit's regular interest. (Awesome profit boost)
- Token can be used to vote on future proposals to update the Compound app.
- Token can be sold on the crypto market.
How Does It Work?
- Compound at its core, is just code.
- Compound connects borrowers and lenders without either party knowing who they are borrowing or lending from.
- It is simply different pools of different cryptocurrencies, powered by its users. (us)
- Simple definition: Anonymous Peer to Peer lending.
How To Start Earning Interest:
1. Browse Compound's markets, to see the different APY (annual % interest) rates on coins
👉 10% APY means if you deposit $1000 USD Coin, in 1 year your profit would = $100
👉 You can pull out your deposit at ANY time.
👉 Your balance increases every second, and you can see it live on your dashboard.
👉 APY rates fluctuate, and are the HIGHEST for stable coin deposits (as seen below)
2. Click on the currency which looks like a promising savings account & check it out:
3. Load up your MetaMask wallet with the crypto you will be depositing. (Guide)
4. "Enable" the coin you want to deposit. (One time transaction fee)
5. Enter the amount you wish to deposit for whichever currency you enabled. (ETH is shown here)
✅ All that's left to do is click the "supply" button and then pay the deposit transaction fee!