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comp
Compound is a decentralized protocol built on the Ethereum blockchain that allows users to lend and borrow crypto assets without intermediaries. The platform establishes money markets where suppliers deposit digital assets to earn interest, while borrowers take out loans by providing collateral.
This coin is available on Newton.
When suppliers lend crypto, they receive cTokens in return, representing their deposits and accumulating interest over time. Compound users can redeem these cTokens for the underlying cryptocurrency at any time, making the process flexible and efficient.
To encourage participation, Compound uses COMP tokens, which serve as both rewards and governance tokens. Every interaction with Compound markets, such as borrowing, repaying, or withdrawing assets, results in COMP tokens being distributed to Compound users. Holders of COMP can propose and vote on changes to the protocol, influencing interest rates based on supply and demand. The governance of the Compound protocol operates through a decentralized system, allowing the community to take part in decision-making.
The launch of the Compound mainnet contributed to the platform’s growing presence in the crypto market. Over time, Compound has gained attention among DeFi users, with the current price of Compound fluctuating based on live trends. The Compound price chart reflects movements in the market, showing the highest price of COMP in the last year and its lowest price during the same period. Traders can track the 24-hour trading volume, follow crypto prices, and find COMP trends to stay informed.
Robert Leshner and Geoffrey Hayes founded Compound after working together on previous projects. The Compound team secured backing from major investors, including Andreessen Horowitz and Bain Capital Ventures. Additional funding later came from Paradigm Capital, a firm associated with one of the co-founders of Coinbase. This investment helped expand the platform, attracting more suppliers and borrowers to Compound markets.
A portion of the 10 million COMP tokens was initially distributed to investors and employees, while the remaining tokens were allocated to Compound users over time. COMP holders can track the current market cap, monitor changes to how COMP tokens are distributed, and follow updates on governance decisions. Crypto trading platforms, including Kraken, list Compound, allowing users to trade COMP based on the current market.
Compound is a decentralized financial protocol that allows users to lend and borrow cryptocurrencies using smart contracts. Lenders supply assets to liquidity pools and earn interest, while borrowers provide collateral to access funds. Interest rates are determined algorithmically based on cryptocurrency price data and market supply and demand. This automated system removes intermediaries and enables efficient lending and borrowing.
When users lend cryptocurrencies, they receive cTokens (such as cETH or cDAI), which represent their deposits and accumulate interest over time. Borrowers must over-collateralize their loans, meaning the value of their collateral must exceed the borrowed amount. If the collateral value drops below a required threshold, the protocol automatically liquidates a portion of it. This mechanism maintains stability within the Compound platform.
The community governance of the Compound protocol allows COMP token holders to propose and vote on system upgrades. Those in executive positions at Compound or who hold executive positions at Compound Labs can submit governance proposals. Making changes to how COMP functions requires community participation through a decentralized voting process. This allows platform updates to align with the interests of users.
COMP tokens serve as both rewards and governance tools within the ecosystem. Lenders and borrowers earn COMP based on their activity and allow Compound users to redeem these tokens or trade them on exchanges. Compound coin price fluctuates based on market conditions, and some users monitor Compound trading trends to optimize their investments. Timing the market can impact potential returns.
Compound was designed to create an autonomous, decentralized lending market that adjusts dynamically to crypto prices. With smart contract automation, community governance, and a transparent interest rate model, the Compound platform remains a key player in decentralized finance.
The price of Compound (COMP) today can be tracked through various financial platforms and crypto exchanges. Here are ways to monitor it:
The price of Compound (COMP) fluctuates based on several key market factors. Here’s what influences it:
The Compound price chart provides insights into price trends, market cycles, and potential entry points. Here’s how to use it:
Compound plays a role in decentralized finance (DeFi), providing a trustless way to earn interest and borrow crypto. Here’s why it matters:
Compound is a governance and utility token that allows users to participate in decision-making on the platform. Holders of COMP tokens directly influence protocol upgrades, interest rate adjustments, and lending parameters. Users in executive positions at Compound can propose changes that affect the platform's functionality. This governance model keeps Compound adaptable to market needs.
Lenders and borrowers receive COMP tokens directly as rewards for their participation in the Compound ecosystem. These tokens provide an incentive for users to supply liquidity or take out loans. The cryptocurrency price of COMP fluctuates based on supply, demand, and market trends. Many users monitor Compound in the last year to evaluate its growth and potential value.
Compound cryptocurrency can be traded, held, or used for governance within the Compound platform. Investors track the lowest price of Compound to find potential buying opportunities. Since Compound is valued based on market activity and governance participation, its price can change significantly. Understanding how COMP represents the price of governance influence helps users make informed decisions.
The governance system allows COMP holders to vote on updates and improvements. Since Compound was founded as a decentralized financial protocol, community participation is essential. Holding COMP enables users to shape policies related to lending rates, collateral requirements, and protocol security. This decentralized decision-making process enhances the platform's long-term sustainability.
Beyond governance, COMP contributes to the growth of decentralized finance (DeFi) by encouraging active participation. Users can learn more about Compound to maximize their rewards and governance influence. Market participants often analyze historical data, including COMP price trends, to assess investment opportunities. As Compound continues to evolve, COMP remains an essential component of its financial ecosystem.
Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, aiming to create a decentralized platform for cryptocurrency lending and borrowing. The protocol officially launched on the Ethereum blockchain in September 2018, enabling users to earn interest or obtain loans on their crypto assets without intermediaries. In June 2020, Compound introduced its native governance token, COMP, transitioning to a community-governed protocol where token holders could propose and vote on changes. This move positioned Compound as a pioneer in decentralized finance (DeFi) governance.
Since its inception, Compound has experienced significant growth, with its total value locked (TVL) reaching substantial figures, reflecting user trust and platform utility. The protocol has integrated with various DeFi applications, expanding its ecosystem and enhancing functionality. The value of COMP has seen notable fluctuations, with an all-time high on May 12, 2021, and a significant low on June 10, 2023. The price movements highlight the volatile nature of the cryptocurrency market and the evolving role of COMP within it.
Compound's governance model allows COMP holders to influence key protocol decisions, including the addition of new assets and adjustments to collateral factors. This decentralized approach allows the platform to evolve in line with the community's needs and the broader DeFi landscape. The active participation of users in governance has been instrumental in Compound's continuous development and adaptation.
The protocol's success has attracted significant investments, with notable venture capital firms participating in funding rounds to support its growth and development. Compound's innovative approach to decentralized finance has established it as a leading platform in the DeFi space, offering users opportunities to earn interest and access liquidity in a trustless environment. As the DeFi sector continues to expand, Compound's role and influence are poised to grow, driven by its community-centric governance and commitment to innovation.
There are several resources available for those looking to understand Compound and its role in DeFi. Here’s where to start:
Compound (COMP) is a decentralized finance (DeFi) token that powers the Compound protocol, enabling lending and borrowing of cryptocurrencies. Here’s how it is used:
The price history of Compound (COMP) has been shaped by major developments in DeFi and broader crypto trends. Here are some notable factors:
Compound (COMP) can be kept in a personal wallet or on a platform that supports its storage. A personal wallet offers greater control over assets, while platform storage may provide easier access. Since the value of COMP fluctuates, some individuals find it helpful to check the live price before deciding where to store their holdings.
Some platforms offer COMP staking for governance participation. Each platform has its own guidelines, so it’s important to familiarize yourself with the process and terms before using this option.
You may use Compound (COMP) for purchases where cryptocurrency payments are accepted. As merchant acceptance varies, reviewing transaction costs and market conditions beforehand can provide clarity on potential fees and pricing at the time of purchase.
COMP can be transferred between digital wallets through blockchain transactions. Before initiating a transfer, it is advisable to verify the recipient’s address carefully. Reviewing market conditions from the last 24 hours can also provide insight into potential fees and price fluctuations.
Some charitable organizations accept COMP as a donation method through direct transfers to a designated wallet. Since not all organizations support cryptocurrency donations, confirming their policies in advance can help maintain a smooth contribution process.
COMP can be exchanged for other cryptocurrencies on trading platforms that support it. Exchange availability, trading pairs, and liquidity conditions may influence the process. Checking recent market trends can help guide trading decisions effectively.
*Newton does not currently support staking, governance, interest-earning, or other utility functions, where applicable, for this asset.
Acquiring Compound (COMP) through private transactions or unregulated sources presents considerable risks. Without the framework of a regulated platform, there is no reliable way to confirm the legitimacy of the seller, increasing exposure to fraud or deceptive practices. The absence of oversight in these transactions necessitates a cautious approach when considering this method of purchase.
Regulated platforms such as Newton provide a structured and secure environment for purchasing Compound (COMP). Offering payment methods like e-Transfers and wire transfers, these platforms facilitate efficient transactions. Additionally, features such as real-time price tracking, market insights, and access to 70+ cryptocurrencies enable users to make well-informed financial decisions.
Newton provides live pricing updates for Compound (COMP), helping you stay informed about market changes in real time. By comparing buying and selling rates, you can make confident decisions based on the latest trends.
Your security matters. Newton offers multi-factor authentication, login activity tracking, and anti-phishing codes to help protect your account and digital assets. You can also manage trusted devices for added peace of mind.
Newton makes it affordable to buy and sell COMP, with a 1.50% - 1.60% fee. For more information about fees, see our Prices page. Newton covers up to $5 of network fees on your first daily withdrawal. For additional withdrawals, or if network fees exceed $5, the estimated network fee is confirmed prior to withdrawal.
Trade anytime, anywhere. Newton is available on both desktop and mobile, giving you the flexibility to manage your holdings on the go. Check balances, track market movements, and execute trades with ease.
Newton’s simple and intuitive platform makes it easy to navigate. You can monitor live prices, track transactions, and manage your digital assets all in one place, creating a smooth and efficient trading experience.
Newton is a Canada-based cryptocurrency platform that gives you access to Compound (COMP) and other digital assets. Designed for Canadians, it offers a local, reliable, and seamless trading experience for both new and seasoned traders.
To start trading Compound (COMP) on Newton, you’ll need to set up an account. This process includes registration and identity verification, giving you access to the platform’s full range of trading features.
Before buying COMP, you must deposit funds into your account. Payment methods like Interac e-Transfer and wire transfer make it easy to add CAD. Newton’s interface provides a streamlined process to help you complete your deposit efficiently.
Once your account is funded, you can purchase COMP directly on the platform. The live price chart updates in real-time, allowing you to see the current market value before executing your trade.
COMP is available alongside a wide range of cryptocurrencies on Newton. You can find it within the platform’s asset selection, which includes Bitcoin, Ethereum, and other digital tokens.
Decide how much COMP you want to buy by selecting a specific token amount or its CAD equivalent. The platform allows you to fine-tune your trade to match your strategy.
Before completing your transaction, review all details to confirm accuracy. Once executed, COMP will be added to your account, where you can hold, trade, or transfer it based on your market approach.
Using a personal wallet for Compound (COMP) allows you to maintain direct custody of your assets, requiring private keys for access. This provides full control but also comes with the responsibility of securely managing your private keys. If these keys are lost, access to your COMP holdings may not be recoverable.
You can keep your COMP directly in your Newton account, Newton provides security features such as multi-factor authentication and login history tracking. Additional protections, including trusted device management and anti-phishing measures, are available to enhance account security.
Your security is important. Newton is committed to being a leader in compliance, security, and technical protocols.
For additional information and to review the risks associated with Compound, please see our Asset Statement.
