Compound Coin Price
What is Compound (COMP) ?
Compound is a marketplace for bitcoin lending and borrowing. Investors may earn interest on their cryptocurrency by lending it, whilst traders can borrow bitcoin to get credit. The Compound coin (COMP) is the Compound protocol 's governance token. COMP token holders have the ability to propose, debate, and vote on all modifications to the Compound protocol. The Compound coin price, also known as a COMP token, has fluctuated in the same way that the price of any other cryptocurrency has. In May 2021, Compound token price peaked at $854.48.
The Compound platformis unusual in that there are no credit checks; transactions may go place without anyone even knowing the identity of the person they 're dealing with. This is achievable if borrowers provide sufficient crypto collateral in the form of Ethereum and other crypto assets; smart contracts automatically grant investors access to loans. To learn more about Compound, here is its whitepaper.
The yield farming frenzy began when Compound released their COMP token. According to the Compound website, 50% of the COMP issued each day is allocated to borrowers and 50% is distributed to lenders. One reason that decentralized finance (DeFi) has surged recently is that more investors want to capture yield farming gains from Compound and other protocols. That means more money coming into the system, which has caused the value stored in DeFi to skyrocket into the billions.
Compound Coin Price
As of 18 August 2021, Compound coin price is listed at $439.038. The COMP coin price has been on its upward trend since 4th August and just started to drop down on 17th August 2021. Currently, COMP token price and real-time update can be found on ARKEN.
Compound coin address (BSC): 0x52ce071bd9b1c4b00a0b92d298c512478cad67e8
Compound coin address (Polygon): 0x8505b9d2254a7ae468c0e9dd10ccea3a837aef5c
Compound coin address (Ethereum): 0xc00e94cb662c3520282e6f5717214004a7f26888
How does Compound work?
Compound links lenders and borrowers using a combination of Ethereum-based smart contracts and cryptocurrency-based incentives. The platform 's two most active users are:
Lenders- Anyone who wants to lend a cryptocurrency on Compound can do so by sending their tokens to an Ethereum address managed by Compound in order to earn interest.
Borrowers- Anyone who deposits collateral in the form of a cryptocurrency on Compound. They are permitted to borrow Compound-supported coins at a percentage of the advertised value.
Compound pays lenders with COMP tokens depending on the number of Tokens in their wallet and a variable interest rate based on the available supply of that asset. The lower the interest rate, the more liquidity there is in a market. Users who lend assets to the protocol can obtain a loan in any other cryptocurrency offered by Compound, subject to the amount of collateral deposited. Importantly, borrowers can be liquidated if the item they borrow appreciates and becomes more valuable than the stated collateral.
Who Are the Founders of Compound? (History of Compound)
Geoffrey Hayes and Robert Leshner, two seasoned entrepreneurs, established Compound. Compound received $8.2 million in financing in 2018 from renowned venture capital companies Andreessen Horowitz and Bain Capital Ventures. The next year, Compound raised an additional $25 million from many of the same investors, as well as newcomers like Paradigm Capital,a venture capital fund with links to Coinbase. Initially, a portion of the entire quantity of COMP coin was allocated to corporate investors as well as the crew.
How Many Compound (COMP) Tokens Are There?
Similar to Bitcoin, only a limited amount of COMP tokens will ever exist. The entire supply is limited to ten million COMP. At the time of writing, less than one-third of the maximum supply was in use. Over the course of four years, 4.2 million tokens will be given to Compound protocol users.
Compound Labs, Inc. stockholders will get about 2.4 million COMP. Another 2.2 million COMP coins with a four-year vesting schedule will be awarded to the founding and existing Compound team.
Finally, 775,000 COMP are set aside to reward community governance, with the remaining 332,000 tokens going to future team members. The precise rate of COMP creation is expected to fluctuate over time, as COMP holders/voters can modify this rate by passing a proposal through community governance.
To establish decentralized governance, the Compound protocol employs five important factors:
COMP — an ERC-20 token that indicates a user 's voting power. The greater the amount of COMP a user has in their wallet, the more weight their delegation or vote on a proposal has.
Delegation — COMP holders cannot vote or make recommendations until they delegate their voting rights to a specific address. If the user wishes to vote themself, the address might be anyone 's or the user 's own wallet.
Proposals — Proposals are executable pieces of code that alter the protocol in some way. A user must have at least 1% of the total COMP supply assigned to their address in order to propose a proposal. There are 10 million COMP in total, thus a user must have at least 100,000 COMP delegated to their address.
Voting — Once their voting powers have been assigned to their address, users can vote for or against individual proposals. The voting session lasts three days. If a proposal receives a majority vote, it gets queued in the Timelock.
Timelock — All governance and other administrative activities must be held in the Timelock for at least two days before they may be enacted.
Why Should You Buy Compound?
What Distinguishes Compound?
Compound is one-of-a-kind in its incentive-based approach to decentralized finance (DeFi). Along with the regular DeFi perks, users are awarded with COMP tokens for their engagement. COMP not only rewards users for their loyalty, but it also serves as a governance token. This encourages users to not only engage in the system but also to save their tokens to vote on future choices that influence things like interest rates and other factors that may affect their future earnings.
What Determines the Value of a Compound (COMP)?
As previously said, one significant element of COMP is that its holders may vote on choices that impact the software 's development. A COMP holder may also assign voting authority to another person. This permits an independent source, such as a legal, financial, or another expert who is not a COMP holder, to vote on behalf of COMP holders if more delicate problems emerge.
How Secure Is the Compound Protocol?
Compound is largely protected by Ethereum since it is a decentralized application (dApp) operating on the Ethereum network. Compound can work because of smart contracts, which allow for the autonomous execution of all activities accessible in its protocol. Compound 's future development and direction are additionally assured by the governance mechanism provided by its native COMP coin.
Compound Use Case
Users can interact with the Compound protocol directly at compound.finance by using a dApp browser or a normal browser with MetaMask or other wallet alternatives. Once linked, users may utilize Compound to take advantage of collateralized loans or earn interest for depositing bitcoin for lending.
COMP coin may be used and earned in two ways. The first is by borrowing and lending, and the second is through COMP mining. On the Compound platform, you may borrow and lend.
When users borrow or lend bitcoins on the Compound platform, they may earn COMP. Even if the user 's net interest is negative, they can gain COMP. This occurs because borrowing and lending cryptocurrencies earn users COMP tokens, which they can utilize to earn a larger proportion of COMP APY every annum. In summary, consumers are being compensated to take out loans using accurate calculations.
Check out Compound coin price chart and buy Compound coin today, on ARKEN Finance.
- Robert Leshner
- Geoffrey Hayes
- Andreessen Horowitz
- Bain Capital Ventures
- Coinbase Ventures
- Bain Capital Ventures
- Andreessen Horowitz
- Chapter One Ventures
Historical Data for Compound Coin Price
|Jan 15, 2023||$52.5700||$55.7700||$51.5900||$52.2000||$49,878,903||$357,826,123|
|Jan 14, 2023||$53.5100||$53.5100||$49.6400||$52.5300||$188,967,753||$359,869,584|
|Jan 13, 2023||$38.3800||$54.8500||$38.3800||$52.7400||$21,530,839||$270,147,957|
|Jan 12, 2023||$37.4700||$38.4100||$37.3800||$37.9800||$25,498,785||$258,320,989|
|Jan 11, 2023||$35.0900||$37.4300||$35.0900||$37.4200||$14,329,606||$247,937,308|
|Jan 10, 2023||$36.4300||$36.4300||$34.5700||$34.7800||$14,629,736||$247,007,265|
|Jan 9, 2023||$35.5200||$36.0300||$35.1100||$35.9100||$20,839,044||$243,251,430|