A group of Compound DAO members called the "Golden Boys" won a narrow vote to manage 5 percent of the DAO treasury on members’ behalf. Here’s what we can learn.
Compound
COMP$44.55
$0.145 (0.33%) 1d
This chart shows the price only in USD.
24h Price range
$43.88$45.04
LowHigh
52w Price range
$33.50$144.00
LowHigh
About
Compound is a decentralized finance (DeFi) protocol built on the Ethereum blockchain that lets users lend crypto assets and earn interest, or borrow crypto assets and pay interest. Compound also has its own Ethereum-based ERC-20 token called COMP.
Geoffrey Hayes and Robert Leshner collectively founded Compound in 2017, and the Compound protocol went live in 2018.
How Compound works
At its simplest, Compound is a decentralized platform through which people can borrow and lend crypto assets. The Compound protocol is made up of liquidity pools — groups of assets controlled by smart contracts on the Ethereum blockchain that execute specific functions if certain parameters are met. These programmed smart contracts cut out the middlemen in the borrowing and lending process, with the system’s actions based on code.
For people that choose to participate, lending on the Compound protocol involves sending a compatible Ethereum-based asset to a liquidity pool and receiving cTokens in return. These cTokens represent the lender’s asset. Lending Ether (ETH), for example, would result in receiving cETH tokens. The lender’s ETH then earns interest while it is part of the liquidity pool. When the lender redeems their cETH, they receive their original ETH, in addition to interest earned in the form of ETH.
Borrowing on the Compound protocol involves providing Ethereum-based digital assets as collateral and receiving the asset of the borrower’s choice, given the involved assets are compatible with the Compound protocol. As a safety measure, the borrower must provide more collateral than the value borrowed. The borrower can lose their collateral capital if market volatility causes liquidation. Borrowers pay interest.
Interest rates for borrowers and lenders depend on the size of the liquidity pools with which they interact.
The Compound platform is compatible with a number of different Ethereum-based tokens, as well as Ether itself. COMP is used in the Compound ecosystem for governance and as a reward given to borrowers and lenders for using the protocol.
Compound crypto price action
COMP is a crypto token trading on numerous digital asset exchanges. A live COMP-to-USD (U.S. dollar) price is available near the top of the page, above Compound’s chart. View Compound price history today for Compound’s token, COMP, on the Compound price chart above.
Latest Market News
A member of the “Golden Boys” voting bloc, Humpy, appears to have accepted a new staking proposal while agreeing to rescind the controversial Proposal 289.
by Martin Young
Community risk assessors warned against the perceived centralization effort days before the proposal’s passage.
Several DeFi apps have been targeted by a domain hijacker who may have discovered an exploit in Squarespace’s registry system, Blockaid stated.
The DeFi risk management firm made the jump to Morpho less than a week after parting ways with rival lending protocol Aave.
After the collapse of Terra, the digital assets sector needed a way to identify critical nodes in the global DeFi community.
Debtors jumped on the opportunity to grab a discount on their loan repayments when USDC and DAI de-pegged from the dollar.
The last week of October turned bearish for the DeFi market despite the string of hacks, as the majority of the DeFi protocols registered bullish weekly gains.
by Prashant Jha
COMP Key Metrics
Market Stats
Market Cap
$395.13M
Volume (24h)
$13.85M
Circulating Supply
8.86M COMP
Total Supply
10M COMP
YTD Return
-43.06%
Compound Price
Open Price (24h)$44.41
High (24h)$45.04
Low (24h)$43.88
High (52w)$144.00
Low (52w)$33.50
All-Time High
$399.92
COMP Price Calculator