Compound

About Compound

Compound is a decentralized finance (DeFi) protocol that allows users to lend and borrow cryptocurrencies in a permissionless and transparent manner. The protocol is built on the Ethereum blockchain and aims to create an open financial system that is accessible to anyone with an internet connection. Compound was launched in 2018 and has quickly become one of the most popular DeFi protocols in the space.

Compound uses a unique algorithmic interest rate model that adjusts interest rates based on supply and demand for each cryptocurrency. This means that interest rates are not fixed and can change in real-time based on market conditions. Users can lend their cryptocurrencies to the protocol and earn interest, or borrow cryptocurrencies by using their existing holdings as collateral.

About $COMP token

COMP is an ERC-20 governance token for the Compound protocol, used to vote on proposals and changes to the protocol, as well as to receive a portion of the protocol's revenue.

How to buy $COMP with a payment card

1. Enter the amount of $COMP and fiat currency that you wish to purchase.

2. Verify your phone and email.

3. Enter or create $COMP wallet

You are given the option to enter your $COMP wallet address or create one using the Swipelux widget.

4. Pass KYC flow

This verification process helps protect you from fraud and other malicious activities.

5. You're now ready to buy $COMP with a credit and debit card.

$COMP analytics

1. Market Position and Adoption: COMP is the governance token of the Compound protocol, a decentralized finance (DeFi) platform built on the Ethereum blockchain. The platform allows users to earn interest on their crypto assets by lending or borrowing them. As of February 2023, COMP is ranked #109 among all cryptocurrencies and is on 219,424 watchlists. The token has a market cap of $369,595,860 and is traded on various exchanges, including Binance, Coinbase, and Huobi.

2. Technology and Platform: Compound is built on Ethereum and uses smart contracts to execute lending and borrowing transactions. The protocol allows users to lend and borrow a variety of cryptocurrencies, including ETH, BTC, USDC, DAI, and others. The interest rates on Compound are determined by the supply and demand of each asset, and users can earn interest by supplying assets or pay interest by borrowing assets.

3. Team:Compound was founded by Robert Leshner in 2018. The team includes experienced developers, entrepreneurs, and advisors who are committed to building a sustainable and decentralized financial system. The project has received backing from well-known venture capital firms, including Andreessen Horowitz and Bain Capital Ventures.

4. Competition: Compound is one of the pioneers of the DeFi movement and competes with other lending and borrowing platforms such as Aave, MakerDAO, and Celsius. The competition in the DeFi space is intense, with new projects launching regularly, and users have a wide variety of options to choose from.

5. Supply: COMP has a maximum supply of 10,000,000 tokens, of which 7,267,152 tokens are currently in circulation. The token has a market cap of $369,595,860 and a fully diluted market cap of $508,645,144. The market cap to total value locked (TVL) ratio is 0.2489, which indicates that the platform is generating a significant amount of value relative to its market capitalization.

$COMP risks

1. Market Volatility: As with any cryptocurrency, the value of COMP is subject to market volatility, which can be affected by a wide range of factors, including macroeconomic events, regulatory developments, and investor sentiment.

2. Smart Contract Risk: COMP is built on smart contract technology, which is subject to bugs, hacks, and other vulnerabilities. While the Compound team has worked hard to ensure the security and robustness of its smart contracts, there is always a risk of unexpected issues arising.

3. Regulatory Risk: As a decentralized finance (DeFi) protocol, Compound operates in a regulatory gray area, and there is a risk that regulatory authorities may seek to crack down on DeFi activities or impose restrictions that could impact the value of COMP.

4. Competition: There are many other DeFi protocols that offer similar services to Compound, and there is a risk that Compound could lose market share to these competitors if they offer better features, lower fees, or other advantages.

5. Governance Risk: As a governance token, COMP holders have the power to vote on changes to the protocol, including changes to interest rates, collateral requirements, and other key parameters. However, there is a risk that some COMP holders may seek to use their voting power for personal gain or to push their own agendas, rather than acting in the best interests of the protocol and its users.

6. Adoption Risk: While Compound has seen strong adoption in the DeFi community, there is a risk that it may not be able to attract new users or retain existing ones, particularly if other protocols emerge that offer better value propositions or more attractive features.

Potential market development triggers

1. Increase in the number of lending and borrowing protocols integrating with Compound, leading to increased demand for COMP as a governance token.

2. Expansion of the Compound protocol into new markets, such as decentralized insurance or prediction markets, leading to increased usage and adoption of the protocol and its token.

3. Partnerships with other DeFi protocols, such as decentralized exchanges or liquidity pools, leading to increased interoperability and use cases for the COMP token.

4. Introduction of new features or upgrades to the Compound protocol, such as new collateral types or improved user experience, leading to increased usage and demand for the token.

5. Increased awareness and adoption of DeFi as a whole, leading to more users and capital flowing into the Compound protocol and its governance token.