Why buy Compound?
1) At its simplest, Compound is a DeFi loan platform where you can borrow and supply ERC20 tokens. These include ETH, BAT, DAI, UNI, USDT, and 0x among others.
2) The Compound platform was built using traditional equity fundraising. This generated some amount of criticism: Compound couldn’t claim to be truly decentralised when its users didn’t have a say in how it runs. That all changed this year, with the launch of the COMP token.
3) COMP is the governance token of the Compound platform. The COMP token is distributed to users of the Compound protocol, in proportion to their contributions. The higher the demand of the token you’re supplying, the more COMP you earn.
4) The token is used to vote on proposed changes to the Compound protocol. COMP token holders receive voting power on a 1–1 basis to the amount of COMP held.
5) Still unconvinced? Rashi Jaiswal, our Senior Software Engineer summed it up best: “Compound provides an environment to enjoy benefits of multiple assets while truly owning just a single asset.”
About Compound (COMP) Network
1) At its simplest, Compound is a DeFi loan platform where you can borrow and supply ERC20 tokens. These include ETH, BAT, DAI, UNI, USDT, and 0x among others. Think of it as putting your savings into a bank. When you deposit a certain amount into your savings account, you earn an annual interest on that amount. Now imagine being able to actually use that money, while it’s earning you interest. That’s the brilliance of Compound.
2) Let’s say you put 0.5 UNI into Compound. The amount of supply and demand for a particular asset automatically determines its interest rate. This means that (at the time of writing), you would earn a whopping 6.50% annual percentage yield (APY) on the amount of UNI you supplied. After supplying, you also have the option to use it as collateral to borrow any other token of your choice on Compound. This is done via cTokens.
3) COMP is the governance token of the Compound platform. The COMP token is distributed to users of the Compound protocol, in proportion to their contributions. The higher the demand of the token you’re supplying, the more COMP you earn. The token is used to vote on proposed changes to the Compound protocol. COMP token holders receive voting power on a 1–1 basis to the amount of COMP held.
Why buy