Compound token

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Compound is a cryptocurrency lending and borrowing system. Investors can lend their cryptocurrency and earn interest on it, while consumers can borrow cryptocurrency to get credit. The Compound Indicator (COMP) is a regulatory standard for industry standards.

Holders of COMP tokens can propose, discuss and vote on any changes to the Compound Protocol. The unique thing about lending on the Compound platform is that there is no credit check; transactions can take place without anyone knowing the name of the person they are dealing with.

This is possible as long as borrowers invest enough money in the form of Ethereum and other crypto assets; smart contracts automatically grant loans to investors. The interest in seeding started when Compound started releasing its COMP brand. According to the Compound website, 50% of COMP’s daily output is distributed to lenders and 50% is distributed to borrowers. So the person doing the “seed farming” gets interest for putting their crypto into the Compound, as well as the COMP reward. This is an example. Even the Investor lends DAI to the Compound protocol. Rates are usually higher than your average savings account (see this page for current rates). In addition to earning interest by lending DAI, Compound will also use the COMP number to make daily payments on the amount it lends on the platform.
Iven can sell COMP tokens for profit or hold them for investment. It yields: Iven earns a yield on his loan (6.9% per year at the time of writing) as well as collecting COMP tokens, which he can hold or sell in the market.
One of the reasons why DeFi has recently exploded is that many investors are looking to capture the benefits of Compound and other systems. This means that more money is flowing into the system, which has caused the value stored in DeFi to climb into the billions.

History of Composites (COMP)

Compound Labs was founded in August 2017 by Geoffrey Hayes and Robert Leshner. The company is located in San Francisco, California, USA. The Compound Protocol white paper was published in February 2019 and was written by Robert Leshner and Geoffrey Hayes.

Geoffrey Hayes is the technical director. Torrey Atcitty is the application manager and Calvin Liu is the strategy manager. In addition, the group has four chief engineers: Antonina Norair, Zachary Skolnik, Jared Flatow and Coburn. In 2018, Compound raised $8.2 million in funding from legendary venture capitalists Andreessen Horowitz and Bain Capital Ventures, the venture capital arm of consulting firm Bain. Compound raised another $25 million in 2019 from several investors, as well as new entrants such as Paradigm Capital, a fund started by one of Coinbase’s founders.