Prix COMP du jour

Compound is an algorithm on the Ethereum blockchain, an autonomous interest rate agreement. Compound has grown into one of the cornerstones of the DeFi industry. As of June 25, 2020, Compound has become the world's largest DeFi protocol, has locked in crypto assets worth more than $500 million, and provided in crypto assets more than $900 million.

Built for developers, Compound has created an effective currency market where assets can be provided and borrowed by individuals without any restrictions (such as KYC). On the Ethereum blockchain, interest rates are compounded by interval and no central participant is required.

Compound relies on the concept of over-collateralization: individuals can provide tokens to earn income, while borrowers can collateralzize assets to borrow other assets.

The loan interest rate is defined by an algorithm based on real-time market dynamics. As more users deposit assets and increase the supply of assets, this will cause the borrowing rate to fall. Conversely, if the demand for borrowed assets increases, it will cause the asset interest rate to rise. The assets (for example, REP) provided in the protocol are exchanged to cToken (for example, cREP), and its value increases over time to reflect the effect of compounding block by block.

COMP is an Ethereum-based token used for protocol governance. To support the voting delegation process, COMP holders (and their representatives) can discuss, propose, and vote on any future changes to the compound protocol. For example, they can include new assets, or change asset-specific compound requirements (eg, required collateral deposits)