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    $56.15

    0.26%

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    Frequently Asked Questions

    • Compound Use Cases

      Compound is a decentralized lending and borrowing protocol that offers several use cases for crypto owners:

      • Earning Interest: Users can supply their crypto to Compound to earn interest. The interest is denominated in the same token that was supplied, and it accrues based on floating interest rates determined by supply and demand in the liquidity pools.

      • Accessing Liquidity: Borrowers can use Compound to borrow crypto by locking in their own crypto assets as collateral. The borrowing limit is determined by the quality of the asset and the collateral factor set by Compound.

      • Tokenization: When users lock their crypto in Compound, they receive cTokens, which are ERC-20 tokens that represent the balance of their crypto assets. These cTokens can be transferred, traded, or used in other DeFi applications.

      • Governance: The COMP token, which is Compound's native governance token, allows holders to propose and vote on changes to the protocol, including interest rates and the types of assets accepted by the platform.

      • Decentralized Finance: Compound provides a decentralized platform for lending and borrowing, eliminating the need for traditional financial intermediaries and offering a community-governed ecosystem for crypto owners.

      Last Updated: 11/30/2024 02:17 UTC
    • Pros of Compound

      • Decentralized Operations: Compound operates on a decentralized network, eliminating the need for intermediaries and reducing risks associated with centralized financial systems.
      • Real-time Interest Rates: The platform uses an algorithmic approach to adjust interest rates based on supply and demand, offering competitive returns to users.
      • Governance with COMP Tokens: Users can earn COMP tokens through lending and borrowing, which grant them governance rights, allowing for a community-driven approach to platform decisions.
      • Financial Inclusion: Compound does not require minimum deposits or traditional financial verifications, making it accessible to a wide audience.
      • User-Friendly Interface: The platform is known for its intuitive design, making it easy for both beginners and experienced users to navigate and manage their assets.
      • Dynamic Interest Model: Compound's floating interest rate ensures that the supply-demand ratio in crypto markets determines the interest rate, making investments safer.
      • High Liquidity: Compound's pools of assets are highly liquid, allowing users to borrow and lend easily and making it easy to find a counterparty.
      • No Credit Check: Compound does not require a credit check to lend or borrow assets, making it accessible to users who may not have access to traditional lending options.

      Cons of Compound

      • Market Volatility: The value of COMP tokens and other cryptocurrencies on the platform can be highly volatile.
      • Overcollateralization Required: Borrowers must provide more collateral than the amount they wish to borrow, which could be risky if the market value of the collateral drops significantly.
      • Complexity for New Users: Despite its user-friendly interface, the underlying concepts of DeFi and cryptocurrency can be complex for new users to fully grasp.
      • Gas Fees: Transactions on the Ethereum network require gas fees, which can be high during periods of network congestion.
      • No Access to BTC: Compound does not work with BTC; instead, it offers Wrapped BTC.
      • Less Frequent Audits: Compound has had fewer audits than some other platforms, which may raise concerns about its security and transparency.
      Last Updated: 11/30/2024 02:17 UTC
    • Founders of Compound

      The founder of Compound is Robert Leshner, a Chartered Financial Analyst and former economist who has also founded two software startups. Key team members include Geoffrey Hayes (CTO), Torrey Atcitty (Application Lead), Calvin Liu (Strategy Lead), Emily Blanchard (People Lead), Coburn Berry (Software Engineer), Jared Flatow (Senior Engineer), Jayson Hobby (Head of Design), and Jake Chervinsky (General Counsel).

      Last Updated: 11/30/2024 02:17 UTC
    • Investors in Compound

      Compound has received funding from several notable venture capital firms. Key investors include:

      • Andreessen Horowitz (a16z): A leading venture capital firm that has backed Compound Labs.
      • Bain Capital Ventures: Participated in Compound's funding round in 2018.
      • Other investors: Compound has also been supported by various other firms and individuals, though specific details on all investors are not provided in the available sources.

      Notable Funding Rounds

      • 2018 Funding Round: Compound raised $8.2 million from multiple venture capital firms, including Bain Capital Ventures and Andreessen Horowitz.

      Additional Information

      Compound is a decentralized finance (DeFi) protocol that allows users to borrow cryptocurrencies or earn interest on their existing holdings. It operates on the Ethereum blockchain and uses smart contracts to facilitate lending and borrowing activities.

      Last Updated: 11/30/2024 02:17 UTC
    • No, Compound is not considered halal. The primary reason is that it facilitates interest-based lending and borrowing activities, which are not permissible under Islamic finance principles. Despite the governance token (COMP) not directly participating in these activities, its value is derived from the protocol that enables riba-based transactions.

      Last Updated: 11/30/2024 02:18 UTC

    Description

    #162

    Compound is a DeFi protocol that allows users to lend and borrow crypto assets on the Ethereum blockchain. It uses smart contracts to create liquidity pools and to distribute interest and COMP tokens to lenders and borrowers.

    Sector:
    Blockchain:

    Market Data

    Rank: 162
    Volume: 83M
    Marketcap: 498M
    Fully Diluted Value: 562M
    Circulating Supply: 89%
    3.3M 2K/7.2K
    2.6M 98K/164K
    1.4M 73K/72K
    1.1M 23K/82K
    788K 51K/47K
    393K 21K/40K
    171K 145K/165K
    121K 14K/18K
    74K 84K/117K
    52K 48K/55K
    41K 46K/60K
    11K 6.6K/9.1K
    7.7K 4K/4K
    6.6K 7.7K/13K
    3.3K 540/538
    2.6K 856/853
    2.6K 2.9K/2.9K
    644 55/54
    624 507/505
    287 5.8K/5.3K