Why?
Compound is a decentralized finance (DeFi) protocol. It allows users to borrow and lend crypto assets. In this way, users can earn interest by holding their assets or make other investments by borrowing money.
What is it for?
Compound was designed as an alternative to the traditional financial system. It offers the opportunity to earn interest or borrow money without going through a bank. In this way, users can gain more control and transparency.
How does it work?
Compound uses a system called liquidity pools. Users can earn interest by depositing their crypto assets into these pools. Users who borrow from the pool pay interest. Interest rates are determined dynamically based on supply and demand.
By Whom Was It Created?
Compound was founded in 2018 by Robert Leshner. Leshner previously worked as a software engineer at the Ethereum Foundation.
Why is it important?
Compound is one of the most popular protocols in the DeFi space. More than $3 billion in assets are held on the platform. Compound has the potential to reduce dependence on the traditional financial system.
When did it started?
Compound was released in June 2018.
Additional Information:
Compound's native token is COMP. COMP holders can participate in the governance of the protocol.
Compound supports a variety of crypto assets.
Compound is open source software. This allows anyone to review and contribute to your code.
