On 9th September, Emirex listed Compound (COMP) for trading on the Emirex exchange. We created a detailed analysis regarding this project to spread information about its potential and recent news among our community.
- Compound is an algorithmic autonomous interest-rate protocol on Ethereum that allows users to earn interest or borrow assets.
- СOMP is an ERC-20 standard token created to decentralize protocol management. COMP holders have the right to propose or to vote on proposed changes.
- Compound relies on the concept of over-collateralization: individuals can supply tokens to earn yield while borrowers can provide assets that are used as collateral to borrow other assets.
- The borrowing and lending rates are defined algorithmically based on real-time market dynamics.
- Token Standard - ERC-20
- COMP Price - $168.08 USD
- COMP ROI - 65.28%
- Market Rank - #41
- Market Cap - $430,490,611 USD
- 24 Hour Volume - $144,079,514 USD
- Circulating Supply - 2,561,279 COMP
- Total Supply - 10,000,000 COMP
- All Time High - $381.89 USD (Jun 21, 2020)
- All Time Low - $61.25 USD (Jun 18, 2020)
Compound is a decentralized financial protocol based on the Ethereum ecosystem. Compound's digital currency provides access to the crypto-loan market, where interest rates are set by the system. Thus, the Compound platform belongs to the representatives of DeFi projects (decentralized finance). The goal of this direction is to remove intermediaries and reduce the cost of financial transactions, which allows people who do not have access to banks to use decentralized banking services.
Compound supports the following currencies: ETH, WBTC, USDC, DAI, USDT, ZRX, BAT, REP.
Compound works like a bank. Members deposit their cryptocurrency and earn interest income on a regular basis. However, the difference is that the company does not store anyone's assets, everything is done through a smart contract.
To start interacting with Compound, one needs to connect an Ethereum wallet. After the cryptocurrency is deposited on the platform, access to all functions opens, in particular, the ability to take loans, providing user’s assets as collateral. The platform offers floating interest rates - a special algorithm analyzes supply and demand for a specific currency.
COMP is an ERC-20 token that allows the community to participate in the governance of the protocol. Asset holders discuss, make proposals, and vote on all changes in the system. The creators of the ecosystem made it possible to transfer COMP to users, considering this an effective method of stimulating participation in management and thereby modernizing the protocol.
Each day, approximately 2,880 COMP is distributed to users of the protocol; the distribution is allocated to each market (ETH, USDC, DAI…), proportional to borrowing demand in that market. Within each market, 50% of the distribution is earned by suppliers, and 50% by borrowers. Carrying out financial transactions on the platform is a prerequisite. COMP is automatically transferred to the user's wallet upon reaching the minimum threshold of 0.001 COMP. Compound Governance Explorer allows one to track the distribution and voting process, as well as view the leaderboards.
- 17 Jun 2020: Launched an on-chain system that freely and continuously distributes COMP tokens to users of the Compound protocol.
- 2 Sep 2020: Introduced a new software development kit, Compound.js.
- 10 Sep 2020: Introduced Autonomous Proposals.
- 12 Sep 2020: Updated Governance and Distribution.
Compound administrators of the DeFi lending protocol COMP seek to bring onboard their shareholders in the governance process of the protocol as they push towards achieving full decentralization:
- 4,229,949 approximately 42% of the COMP token will be diverted to a Reservoir contract. It would in turn disburse 2,880 tokens daily in a four-year plan distribution plan that is aligned to bring more users into the governing of the Protocol.
- It will trickle down to the array of markets: ETH, USDC, DAI based on the interests generated from the respective markets. From which they will be split 50:50 ratios for suppliers and borrowers with the COMP transferred straight to their wallets for transactions once their addresses reach the 0.001 COMP set threshold.
The hype surrounding COMP distribution played a significant role in the cryptocurrency market and has revolutionized the landscape of decentralized assets. Safety and ease of use are key drivers for the development of the project. Once governance is fully decentralized, Compound could strengthen its place in DeFi as one of the core money market protocols.
- Compound is a popular DeFi protocol, which is taken as a basis by other projects (Dharma, Argent, Zerion, etc.).
- The COMP token is credited to users as passive income as a reward for actions on the platform.
- There are no restrictions on the country of residence or other factors for use.
- Support from strong investors Coinbase Ventures, Polychain capital is an excellent factor for project development.
- API and detailed documentation allow developers to use Compound to create new DeFi applications.