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About Compound
Compound is a decentralized liquidity protocol on Ethereum where users supply assets into shared markets and borrow against collateral. Rates adjust algorithmically with supply and demand, and every position is managed by smart contracts rather than an intermediary. COMP is the governance token.
How Compound Works
Each supported asset has its own market. Supplying to a market returns cTokens that grow in redeemable value over time, while borrowers must keep collateral above a required ratio or be liquidated. Because rates are a function of how much of a pool is being used, they move continuously without anyone setting them by hand.
The History of Compound
Compound was founded by Robert Leshner and Geoffrey Hayes and launched in 2018. In June 2020 it began distributing COMP to users of the protocol, a mechanism widely credited with starting the yield-farming wave that defined DeFi that summer. Compound III, a later redesign, narrowed each market to a single borrowable asset to reduce risk.
What COMP Is Used For
COMP is used to propose and vote on changes to the protocol: which assets are listed, what collateral factors apply, how the treasury is spent. Holders can delegate their votes without transferring the tokens. It is also distributed to protocol users as a participation reward.
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Why buy Compound with YouHodler? +
YouHodler combines advanced security and encryption with a simple way to buy and sell COMP, fast crypto transactions, support for multiple fiat currencies, and a platform that works for newcomers and experienced traders alike.
Is Compound a good investment? +
Compound is one of the oldest and most battle-tested DeFi protocols, and COMP carries real governance power over a substantial treasury. Its market share has been eroded by newer designs, and the asset is exposed to smart-contract risk as well as the general volatility of crypto. Look into the project before investing.
Can I buy Compound today and sell it tomorrow? +
Yes. YouHodler supports selling as well as buying, so you can acquire COMP and later exchange it for fiat currencies such as USD or EUR. Transactions settle quickly, major fiat currencies are supported, and withdrawals go out by bank transfer.
Is it safe to buy Compound? +
Buying COMP is generally safe on a reliable platform like YouHodler, which applies data encryption, identity verification and multi-layer account protection. The asset itself stays highly volatile, so prices can move sharply over short periods.
How do I convert Compound to cash? +
Connect a bank account, debit card or credit card to your YouHodler profile, exchange your COMP for a fiat currency such as USD or EUR, then withdraw the balance straight to your bank.
How much is $100 worth of Compound right now? +
That depends on the live COMP price, which moves constantly. Use the price chart on this page to see the current rate and work out exactly how much COMP $100 buys at this moment.
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