Compound

Compound is a decentralized cryptocurrency market protocol built on the ethereum blockchain, and COMP will be distributed free of charge to users of the Compound protocol for lending and borrowing transactions

COMP Coin is a high-profile digital asset in the DeFi space, whose founder is Robert Leshner Beginning June 16, 2020, 23.96% has been distributed to Compound Labs' shareholders, 22.26% will be distributed over 4 years to founders and team members, 3.73% will be distributed to future team members, and 50.05% has been reserved for users of the agreement (of which 42.3% have specified how they will be distributed).                                    

Compound is an ethereum-based protocol for creating pools of funds with algorithmically calculated interest rates based on changes in the supply and demand of assets. Suppliers and borrowers of assets interact directly with the protocol to earn or pay floating interest rates. The Compound protocol attempts to solve the liquidity problem through the money market system and the fact that most cryptocurrencies currently sit idle on exchanges & wallets with no corresponding interest for the asset owners.

In 2022, Compound, the DeFi lending protocol, tweeted that it was about to launch its third version of its multi-chain lending protocol, Compound III (Comet), which will first deploy the USDC marketplace on Ether, and is currently deploying contracts on the mainnet, which will be activated by Compound governance. in February 2023, according to Polygonscan data , Compound III has gone live on the Polygon network. As previously reported, Compound III team member Jared F stated in the project's Discord community on February 14 that Compound III plans to go live on Polygon within a week.

As of 2024, Compound continues to advance its DeFi lending services, expanding the multi-chain capabilities of its protocol, especially through Compound III, known as "Comet." Initially deployed for the USDC market on Ethereum, Compound III has since been extended to other blockchains, including Polygon, Optimism, and Arbitrum. This multi-chain expansion allows Compound to reach a wider user base by offering lending and borrowing options across various networks. The protocol’s growth is supported by a robust governance structure using its native COMP token, enabling users to propose and vote on protocol changes, ensuring decentralized decision-making.

Compound has also implemented strategic initiatives to increase liquidity and reduce slippage for key assets, especially COMP and USDC. This includes partnerships to enhance liquidity pools, support for new collaterals, and various grants for ecosystem growth, such as collaborations with AlphaGrowth and Gauntlet for risk management and community engagement.

Above are only for introduction, not intended as investment advice.