What is Compound (COMP)?
Compound (COMP) creates properly functioning money markets.
Compound protocol is on the Ethereum blockchain that contains a transparent and publicly-inspectable ledger, with a record of all transactions and historical interest rates.
Creating properly functioningmoney markets
Each money market has interest rates that are determined by the supply and demand of the underlying asset; when demand to borrow an asset grows, or when supply is removed, interest rates increase, incentivizing additional liquidity.
Crypto lendingwithout a central party
Users can supply tokens to a money market to earn interest, without trusting a central party.
Borrowing by using their balancesin the protocol as collateral
Allow users to frictionlessly borrow from the protocol, using cTokens as collateral, for use anywhere in the Ethereum ecosystem.