Compound
About Compound
Compound (COMP) is an Ethereum-based algorithmic lending protocol that basically provides numerous accessible crypto lending and borrowing opportunities for everyone. As this decentralized market is built on Ethereum, it mostly supports ERC-20. It is worth mentioning that Compound does offer various Decentralized Finance (DeFi) solutions for other ecosystems, too. Compound works pretty similar to traditional loans: borrowers pay interest on the amount they receive, while lenders earn yields from the funds they allocate. Also, users who don’t feel comfortable with the potentially complex crypto lending have the chance to earn up to 4.00% annual percentage rate (APR) simply by depositing everyday U.S. Dollars to the Compound Treasury. COMP, the crypto token of Compound, unlocks governance rights to its holders, who can then participate in the vote-based decision making of the protocol.
In the last hour, Compound's price has seen a change of +0.07%, and over the past 24 hours, its price has moved by -1.19%. Over the previous week, Compound's price has moved by +12.48%. The current price of Compound is $23.96, accompanied by a trading volume of 17.97M in the last day. Compound's price is currently 97.37% below its all-time high of $911.20, which remains the highest price Compound has achieved since its launch. The circulating supply of Compound stands at 10.000M, translating to a total market capitalization of 239.6M.
Market stats
Frequently asked questions
What is the Compound network?
Compound and its trading symbol (COMP) are a decentralized network for decentralized finance (DeFi) protocols developed and built on the Ethereum blockchain. It enables users to access a full range of cryptocurrency lending and borrowing services through a decentralized method that requires no intermediaries or approvals, thereby revolutionizing traditional finance by eliminating intermediaries such as banks and financial institutions through smart contracts on the Ethereum blockchain. Compound enables individuals to earn interest on their cryptocurrency holdings by providing assets to liquidity pools or borrowing assets against collateral, and uses COMP tokens to pay transaction fees and interest on these loans.
How does the Compound network work?
The Compound protocol relies on smart contracts on the Ethereum network to create a decentralized lending and borrowing marketplace. Users deposit their crypto assets into liquidity pools and, in return, receive cTokens representing their share of the deposited assets. Borrowers can then obtain loans from the available liquidity without the need for a central intermediary, paying interest rates that are automatically determined by supply and demand for each asset. The interest earned is automatically distributed to depositors according to their shares in the liquidity pools. Interest rates are adjusted dynamically: an increase in liquidity leads to a decrease in interest rates, and vice versa when liquidity decreases. COMP tokens serve as utility and governance tokens, allowing token holders to vote on proposals to develop the protocol and modify its mechanisms, provided they hold a minimum of 25,000 COMP tokens.
How do you buy COMP Rain?
Buying COMP on Rain involves a few simple steps:
- Ensure you have funds in your fiat account or add your card in the payment methods section.
- Click “Trade” and select “Buy”.
- Select the cryptocurrency you wish to buy.
- Enter the amount you wish to buy in your preferred currency.
- Choose your payment method, either using a bank card or the cash balance in your fiat wallet.
- Click “Next” to review your transaction details.
- Click “Buy Now” to complete the purchase.
The COMP tokens will be added to your wallet after the transaction is executed.
At Rain, we use cold storage to keep the majority of our clients’ assets offline.
Rain is licensed by the Central Bank of Bahrain (CBB) and the Abu Dhabi Global Market Financial Services Regulatory Authority (ADGM FSRA). This provides customers with a regulated framework for trading digital assets in the region.
What are the risks and considerations
Before buying COMP, it is important to understand the associated risks:
• Price volatility risk: The token may be subject to sharp price fluctuations.
• Technical risk: Smart contracts may be vulnerable to cyberattacks or programming errors, which could affect the token.
• Transparency risks: The currency may be affected by any changes in the collateral backing the currency reserves, which could impact the currency.
• Liquidity risks: Liquidity may affect the currency’s price movements.
• Legislative and regulatory risks: Legislation and regulations may affect the currency’s future and growth.
• Security risks: You must protect your account with a strong password and two-factor authentication, and choose an appropriate storage method after thoroughly researching your options.
You should not purchase COMP based solely on price predictions. Instead, you should study the whitepaper, the currency’s use cases, the project’s vision, and your risk tolerance before making any decision.
Can COMP tokens be mined?
No, COMP tokens cannot be mined, they are distributed to protocol users and stakeholders according to a fixed schedule.
What are COMP tokens?
The native ERC-20 governance token that grants holders voting rights on protocol changes and upgrades.
What are cTokens?
They are interest-bearing receipts granted to lenders that represent their assets deposited in the pool.
How to invest in Compound?
Rain offers you a number of ways to start investing in Compound, including buying Compound through bank transfers or by using your bank card. To purchase Compound on Rain, you can select Compound in your Rain account, then click Trade and select Buy. Enter the amount you wish to buy and click Next to review and confirm your purchase.
How to buy Compound with card?
Once you add your bank card to your Rain account, you can use it to buy Compound directly. You can start by adding your card to your payment options on your Rain account. To purchase Compound using your bank card, you can select Compound, click Trade then select Buy. Enter the amount you wish to buy and choose your card from the payment options. Click Next to review and complete your purchase by following the instructions on the screen.
note: The purchase option with debit or credit card is not available for our users in Turkey
How to buy Compound through bank deposit?
Rain enables you to buy Compound using your local currency. You can deposit funds through bank transfer, a process which takes 1-4 business days depending on your location. You can start by depositing funds to your Rain account from your bank account. Simply click on Deposit and enter the amount you would like to transfer. Click next and copy the instructions that will appear on your screen to complete the transfer from your bank account. Note that Rain does not automatically pull funds from your bank account and you will need to manually transfer the funds from your bank account to Rain's banking information.
Within 1-4 business days, the funds will be available in your Rain account and you will be able to use them to complete purchasing Compound. To do that, you can select Compound in your Rain account, click Trade and select Buy. Enter the amount you wish to buy with and click Next to review and confirm your purchase.
How to sell Compound?
This is an easy process that requires only a few clicks. Here are the steps needed to sell Compound successfully:
On your Rain account, select Compound then click Trade and select Sell. Enter the amount you wish to sell and click Next to review and confirm your sell transaction by entering an OTP. You will receive a confirmation email once the transaction is done with the details.
How to convert Compound into cash?
Rain gives you the opportunity to sell Compound and withdraw your funds from your Rain account to your local bank account. First, you need to add your personal bank account to your Payment Methods option on your Profile.
Once your bank account is added, you can sell Compound and withdraw the funds to your bank account by clicking on Withdraw and entering the amount you wish to withdraw. Click Next to review and confirm your withdrawal information by entering an OTP.
Once the withdrawal request is submitted, you will receive a confirmation email that the withdrawal is being processed. Processing your withdrawal request can take between 1-4 business days.
How to receive Compound?
If you would like to receive Compound in your Rain account, simply click on Receive and select Compound from the list at the top of the page. You can then either copy the address visible at the botom of the screen or share the QR code to to complete your receive transaction.
Make sure that you are using the correct network when receiving Compound to avoid possible loss of funds.
How to send Compound?
You can easily send your Compound from your Rain account to any external wallet by clicking on Send and selecting Compound from the list at the top of the page. Enter the amount you wish to send and add the external wallet address you are sending to. Click Next to review and confirm your send transaction by entering an OTP.
Why buy Compound with Rain?
When you buy Compound with Rain, you ensure that your assets are going to be safely stored on a regulated platform that follows strict compliance standards and is subject to periodic audits. Rain also uses bank-grade security measures like Cold Storage systems. Trading and storing Compound on Rain also means that your asset is going to be stored on 1:1 basis, which means your assets will always be available to you.
What is a Compound wallet?
A Compound wallet is where you can securely store Compound. A wallet helps you maintain ownership of your asset as well as enable you to trade, send or receive crypto-assets.
What is a Compound address?
A Compound address is a string of unique characters that is tied to your Compound wallet. The address functions just like a bank account number and it is what you use in order to send Compound from your wallet, or to receive Compound to your wallet.
What trading pairs available for Compound?
There are over 200 currency pairs available on Rain for you to trade with. You can trade Compound with Bahraini dinar, Kuwaiti dinar, Emirati dirham, Omani rial or US dollar, depending on your location. Additionally, you can swap Compound with 200 other assets like BTC, LTC, XRP, ETH. You can explore your options by visiting the market page on your Rain account: https://www.rain.com/market
What is the minimum order size to buy Compound?
You can trade Compound with any amount above $30 or equivalent in your account's currency. You can start trading Compound now by clicking the Trade button on your Rain account.
What are the most popular cryptocurrencies besides Compound?
Besides Compound, you can find over 150 assets available on Rain for you to start trading such as Bitcoin (BTC), Ethereum (ETH), Solana (SOL), USDC, Ripple (XRP), DOGE, Tether (USDT), Chainlink (LINK) or BCH. You can explore these options by going to the homepage of your account and scrolling through the available assets. When you are ready to start trading, simply click on the asset of your choice and click Trade.
What blockchain is Compound built on?
Compound is built on the ETH blockchain. This determines how transactions are verified, fees are structured, and how compatible it is with wallets and other decentralized applications (dApps).
How do I keep my Compound safe?
To keep your Compound safe, make sure to use trusted wallets that support ETH. Enable two-factor authentication (2FA), store long-term assets in cold wallets, and never share your private keys with anyone. You can always refer to our Security & Policies section for more tips.
What will the price of Compound be in next 5 years?
Price predictions for Compound over the next five years are highly speculative and depend on crypto market conditions, adoption, and broader crypto trends. We encourage you to do your own research and make informed decisions.
Is trading Compound taxable?
Trading Compound may be considered taxable in some countries with varying tax rules, so we recommend checking with your local tax authority or financial advisor for specific guidance.
What is Compound's ATH?
Compound’s all-time high (ATH) was $ 911.20 on 12 May 2021. This represents the highest recorded market price of the asset to date.
What is the market cap of Compound?
With a market capitalization of 239.6M, Compound is ranked 117 among other crypto assets.
What is the all-time high of Compound?
The highest valuation of Compound since its launch was at $911.20, marking its all-time high.
What is the 24-hour trading volume of Compound?
The trading activity of Compound over the last 24 hours was at 17.97M, highlighting its liquidity in the market.
How many Compound are there in circulation?
There are approximately 10.000M units of Compound currently in circulation, affecting its market dynamics.
What is the relative popularity of Compound?
Compound market cap is around 239.6M.
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