Like many of you, I’ve been swept up in the DeFi craze. At first, I was attracted by the impressive APY for supplied assets – something around 20% for BAT on Compound – and immediately supplied all my BAT in hopes of earning a solid passive income. Then, COINBASE offered a learning path for COMP. After completing the course, I began to read and invest more time on the Compound platform, adding additional assets to farm the supply APY and COMP distribution.
I began to dig into the discussions on comp.xyz. As I read and researched more on both the technical and social aspects of Compound, the value of DeFi and its power to disrupt and change a global financial system became apparent. I took out my first borrow against the capital I had supplied, taking that risk so that I could participate in both sides of Compound.
I believe in the mission of Compound and all DeFi applications. I am incentivized to hold onto COMP so that I can participate in the governance of a truly decentralized financial organization, and have a say in the future of the world.
That being said – in the course of my research and reading I’ve come across three incredibly useful tools for interacting with Compound.
1. Comp Checker
Comp Checker is a simple tool that you can utilize to check you accrued and collected COMP per supplied asset.
Want to check how much COMP you’re receiving? Simply plug in your ETH address and click “Find Balance”.
The tool is particularly useful if you want to do research on other ETH addresses. Maybe you want to see what the whales earn? Maybe you want to learn more about addresses with large transaction? Comp Checker is your tool.
It was originally created by Amanusk – and posted to Reddit on July 8. The original URL on that post is no longer valid, but the URL supplied above works!
Make sure to let Amanusk know if you like his tool.
2. Predictions.Exchange
Predictions.exchange is probably my favorite tool of the three. It allows you to input various amounts of supplied and borrowed assets on Compound and get a total APY including COMP generated. It uses the current rates of each asset and returns in realtime the estimated Net interest and COMP earned over the course of a year.
You are not required to supply an ETH address and can run the tool as many times as possible.
Personally, this has been INVALUABLE to me, as I purchase, supply and borrow assets from Compound. I have been able to test the amounts I’d like to borrow or supply in order to return the best APY possible.
The tool, in addition to Compound allows you to run Balancer, and soon, Curve, predictions for each of their native tokens. The tool makes it infinitely more easy to determine to which pool, or asset you’d like to supply and gauge the returns in order to maximize your investments.
It is built and managed by @mhonkasalo – if you like it – feel free to let him know!
3. Compound Liquidator
On the “dark” side of Compound lies the Liquidators – people who purchase overleveraged assets at a discount in order to liquidate borrowers who borrow too much.
Without a tool however, Liquidation is little more than a boogie man or warning.
I was interested to learn how liquidation happened and in my research ran across a number of articles.
- DeFi Research: Understanding Compound Liquidators
- Compound Finance — A Liquidating Opportunity
- How to Build a Compound Liquidation Bot
But ultimately, unless you have the knack for technical creation, Compound Liquidation is just out of reach for most people. So I began searching for something that would allow me to participate in liquidation, but not require me to build my own tool.
The tool makes liquidation easy – simply log in with METAMASK or Trust Wallet (It requires a Web3 Browser) – read the directions on Github, and you too can participate in debt liquidation. The tool makes it easy to pick and choose which addresses to validate – and if you trust it to interact securely with your wallet, you can easily begin to participate in Compound Liquidation.
Although debt liquidation on Compound is still somewhat technical - ZenGo indicates:
During 2019, $10,375,064 were repaid by liquidators using Compound version 2, resulting in a total of $518,752 profit for liquidators.
This means there is a good amount of money to be made, at nearly a 5% return on repaid investments. So the head scratching and effort it takes to understand the liquidation tools could add another 5% ON TOP of what you are already making on Compound.
Make sure to let ckhatri know if you like his tool!
Please note – I am not sponsored by or being paid by any of these creators. I wanted to share my research with you to further spread the growth, albeit somewhat indirectly, of DeFi and Compound in particular.
That being said, do you use any other tools? Are there any creators that have made something you use that makes interacting with DeFi platforms easier?
Let me know in the comments below.
