$496.54 / $448.81
What is Compound (COMP)
Compound defines itself as “a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset”. Suppliers and borrowers of an asset interact directly with the protocol, earning and paying a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.
Each money market is unique to an Ethereum asset, such as Ether, an ERC 20 stable coin such as Dai, or an ERC 20 utility token such as Augur, and contains a transparent and publicly inspectable ledger, with a record of all transactions and historical interest rates. COMP is the ERC 20 asset that powers the community governance of the protocol. COMP holders can debate, propose and vote on changes to the Compound protocol.