Compound

Crypto lending and payments

Compound is a decentralized bitcoin lending platform built on Ethereum blockchain protocols.

Pros

  • The fact that no KYC, AML, or credit score is necessary to use the Platform provides consumers a sense of liberation.
  • One of the most established and well-known names in the DeFi space.
  • The native tokens of the Compound: COMP, are used to reward users. It functions as a governance token as well as a profitable asset.
  • There are no restrictions on using the asset pool several times.
  • The Compound is a Community-governed Decentralized Autonomous Organization.
  • In comparison to regular banking, interest rates are higher.

Cons

  • Liquidation of collateral is frequently a big setback for users due to the unpredictability of Cryptocurrencies.
  • Users can only lend or borrow from a limited number of cryptocurrencies.
  • Yield farming can be particularly dangerous because users can exchange crypto for much more than they put down.

Features

  • Hassel free access to credit
  • Smart contracts algorithmically calculated interest rates
  • Rewards lenders and borrowers with COMP token.
  • Yield farming

What is Compound?

Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes and is based in San Francisco, California. It's a completely decentralized bitcoin lending platform built on Ethereum blockchain protocols. The Platform has over $11B assets under management, with interests in 18 markets.

Compound was initially a centralized organization, but after the recent release of its native governance token, COMP, the first step toward transforming Compound into a community-governed decentralized autonomous organization was taken (DAO).

Customers can lend or borrow at the same time about 12 Ethereum-based assets such as BAT, ZRX, and WBTC using Compound Protocol.

Furthermore, a distinctive element of the platform is that it delivers a frictionless and simply manageable platform by employing smart contracts algorithmically determined interest rates, reducing unwanted nuisances that one could encounter in a regular financial banking system. The platform has introduced Yield Farming, an innovative crypto-economy that has increased users' borrowing power.

Year Founded: 
2017
Check out Compound now
@compoundfinance

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Compound