What is Compound (COMP)?
RANK #166The governance token of Compound, a pioneering DeFi lending protocol.
Compound market stats
Compound at a glance
- Ticker
- COMP
- Launched
- 2020
- Category
- DeFi · Lending
- Network
- Ethereum & L2s (ERC-20)
- Role
- Governance
- Protocol
- Compound
Categories: Decentralized Finance (DeFi) · Yield Farming · BNB Chain Ecosystem · Lending/Borrowing Protocols · Avalanche Ecosystem · Polygon Ecosystem
How Compound works
Compound (COMP) is the governance token of Compound, one of the earliest and most influential decentralised lending protocols. Compound lets users supply assets to earn interest or borrow against collateral, with rates set algorithmically by supply and demand.
COMP popularised “liquidity mining” in 2020 and is used to govern the protocol’s markets, parameters and treasury.
Users supply crypto to Compound’s pools to earn interest, or post collateral to borrow other assets. Interest rates adjust automatically based on how much of each pool is borrowed.
COMP holders govern which assets are listed, collateral factors and other risk parameters.
What moves the Compound price?
- Lending and borrowing demand on Compound.
- Governance decisions and new deployments.
- Overall DeFi activity and regulation.
- The broader market cycle.
What COMP is used for
- Governing the Compound protocol and its markets.
- Voting on interest-rate models and collateral rules.
- Directing the protocol treasury.
Compound FAQ
What is Compound (COMP)?
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Compound is a pioneering DeFi lending protocol where users earn interest or borrow against collateral. COMP is its governance token.
What is COMP used for?
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COMP is used to govern Compound — voting on listed assets, interest-rate models, risk parameters and the treasury.
Did Compound start liquidity mining?
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Compound’s 2020 COMP distribution popularised liquidity mining, where users earn governance tokens for supplying and borrowing.
How do I buy Compound?
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COMP is an ERC-20 token available on most major exchanges.
This page is information, not financial advice. Prices come from CoinGecko; the text is written and checked by our desk. See our editorial policy.
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