Compound
About Compound
Compound is a pioneering DeFi lending protocol that popularised the concept of algorithmic, autonomous interest rates. Compound V3 (Comet) simplified the protocol to single-borrowable-asset markets with improved risk management. The COMP token was one of the first governance tokens to be widely distributed through liquidity mining, helping launch the 'DeFi Summer' of 2020.
Key Features
- Algorithmic interest rates
- Single-asset borrowing (V3)
- Automated liquidations
- Governance via COMP
- Protocol reserves
- Battle-tested security
- Multiple market deployments
Risks
- Smart contract risk
- Interest rate volatility
- Governance capture risk
- Oracle dependency
- Liquidation risk for borrowers
Community & Socials
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