About Compound

Compound, established in 2017, is a decentralized finance (DeFi) protocol that enables users to earn interest by lending and borrowing various cryptocurrencies through lending pools. Functioning automatically via smart contracts on the Ethereum network, Compound's native token, COMP, adheres to the ERC-20 standard. The platform connects lenders and borrowers using these smart contracts. Lenders supply tokens to pools and receive cTokens (like cETH or cDAI) as interest-bearing representations of their deposits. Borrowers deposit collateral in cryptocurrency and can borrow other supported cryptocurrencies up to a percentage of their collateral's value. Compound rewards lenders with COMP tokens based on their cToken holdings and interest rates, which are influenced by asset supply and demand....