About Compound (COMP)
Compound is a decentralized cryptocurrency borrowing and lending platform built upon the Ethereum blockchain network. Compound was founded by avid serial entrepreneurs Robert Leshner and Geoffrey Hayes in 2017. In January 2018, the platform was reportedly launched and followed by significant fundraising success in both 2018 and 2019.
Compound is a decentralized protocol that seeks to incentivize users to borrow and lend on the peer-2-peer finance platform. Since Compound is built on Ethereum, the protocol primarily supports ERC20-based coins. Additionally, Ethereum gives the Compound network smart contract capability, which is a relevant feature in the network design scheme.
Since Compound seeks to remain fully decentralized, borrowing and lending done on the platform are all automated without an intermediary, executed by smart contract technology. The Compound network design implements incentives for both borrowers and lenders. The technology renders depositors who choose to lend to other borrowers on the platform an issued version of the cryptocurrency deposited, such as cETH, or cDAI.
The other token that comes into the incentivization system is the Compound network token, known by its token ticker - $COMP. $COMP is an ERC20 token and assists in the Compound ecosystem by being awarded to users who borrow, withdraw or repay assets to the platform. COMP is also rewarded to lenders who hold the issued pegged tokens as collateral for their deposited funds. Furthermore, $COMP is used for the governance of the network. As COMP is an ERC-20 token, it utilizes a Proof-of-Stake (PoS) mechanism following the Ethereum Merge. Compound price is updated and available in real-time on Binance.
