Compound Ranks Among the Best Lend and Borrow Crypto Projects: Discover Why!
Compound is a decentralized finance protocol that allows users to earn compound interest on their cryptocurrencies through smart contracts. It was launched by Compound Labs Inc. in 2018 and runs on top of the Ethereum blockchain. Users can lend or borrow cryptocurrency assets without the need for middlemen or brokers. The platform utilizes a Liquidity Pool and an algorithm that automatically determines interest rates for specific coins. The native COMP token is used as a governance token for the platform and rewards users for their participation. There are no KYC, AML, or credit score requirements for users to sign up and use the platform. However, due to the volatility of the cryptocurrency market, users could experience liquidation of collateral.