What is Compound?
Compound is a DeFi (decentralized finance) app, that aims to remove the middleman when borrowing money, and it does so by utilizing the Ethereum blockchain with a smart contract. Compound has two groups of users, lenders and borrowers that make up the system. It uses Ethereum to allow for users to borrow ETH tokens and to reward those lending them out.
What is Compound Token (COMP)?
Compound token is the token that is for the compound network. At the time of writing, you can't lend out COMP, but you can get COMP distribution when you supply or borrow tokens depending on the amount, and can be used to vote for the future of the protocol. At time of writing, COMP is currently trading for $232 on Coinbase.
What are the advantages of using the Compound Protocol vs traditional banks
Compound is decentralized, meaning one person or a group of people do not have control over the network, like banks today. Being decentralized is good because it makes borrowing a lot easier with no delays, other than Ethereum network delays.
How can I join the Compound Protocol?
Anybody can take part in Compound Protocol because it is decentralized and nobody can prevent you from accessing it. You can visit the online app for it here: app.compound.finance. In order to supply tokens, you have it in your wallet and can use the "Supply" feature to deposit to the protocol and start earning from it. In order to take out a loan, you must first supply coins as collateral, and you can typically take out a loan worth 60% of your collateral value, but this number varies based off of different factors.
What I think of Compound
Compound looks like a decent protocol to me, and could potentially grow even bigger. Right now, they have around $1Bn worth of tokens being supplied to the protocol, and is expected to grow.
Compound (COMP) was recently listed on COINBASE along with Coinbase Earn, and on BINANCE with margin trading, which lead to the spike of the price from $100 per token to a $250 average nowadays. I think that this protocol has a lot of potential and it is a good opportunity to supply or borrow, and earn some COMP tokens while you're doing so (this is NOT financial advice)
