In-Depth Look at Compound (COMP)

In focus | Compound Logo Compound $COMP
In-Depth Look at Compound (COMP)

With the increase in popularity surrounding Decentralized Finance (DeFi), there have been numerous projects which have been developed as a means of operating the traditional money market, but through the utilization of a distributed network of computers that are incentivized to do so, instead of the reliance of a centralized authority such as a bank or a brokerage to do so.

Compound is one such emerging DeFi protocol, which aims to use multiple cryptocurrencies as a means of providing its service. Today, we are going to go over just about everything that you need to know when it comes to Compound (COMP).

What is Compound (COMP)?

Compound is essentially a project which is based on top of the Ethereum blockchain network that aims to allow borrowers to take out loans after lenders provide loans by locking their assets within the protocol. As such, Compound allows people to earn money on the crypto they save, and the project is a part of DeFi. Users are essentially given the opportunity to borrow crypto from Compound by putting up collateral above a specific threshold which is defined by the project.

The two main users of the platform include the lenders and the borrowers as a result of this. The lenders are responsible for lending cryptocurrency on Compound, where they send their tokens to an Ethereum address which is controlled by the Compound team, after which they earn interest by doing so. Borrowers, on the other hand, post collateral on Compound in the form of a cryptocurrency, and they are allowed to borrow cryptocurrencies that are supported by Compound at a percentage of the value which is posted.

Compound then rewards its lenders with COMP tokens which are based on the number of cTokens that are held in their wallets.

The COMP Token Explained

The COMP token is the native cryptocurrency token that is used as a means of powering Compound.

In other words, as a means of distributing its operations, Compound is essentially programmed to reward all of its users with COMP tokens. Additionally, the token has an additional level of functionality due to the fact that anyone that owns COMP tokens can then participate in the decisions that affect the software, where they vote on proposals for the rules that govern the platform.

Furthermore, a COMP holder can even assign their voting rights to someone else, who can then vote on their behalf.

Recent Developments of Compound (COMP)

On February 21, Compound made an official announcement surrounding Proposal 085 by Gauntlet, which updates collateral factors surrounding AAVE, LINK, MKR, SUSHI, UNI, and YFI.

On April 12, 20221, Robinhood, an online discount brokerage that offers commission-free investing and trading, added support for the Compound (COMP) cryptocurrency to their list of offerings.

Future Developments of Compound (COMP)

Compound Labs have posted numerous jobs on their Twitter page, which signals that there could be many updates planned for the future of the platform.

On April 9, Compound also announced that it is hiring a Director of BD and Partnerships for Compound Treasury. The business development director oversees the sales and the marketing teams but also looks for new markets and even spots new growth opportunities.

Additionally, on April 13, Compound announced that it is hiring engineers with a focus on the front end, Rust, infrastructure, and blockchain, alongside EVMs, as a means of building the bridge between DeFI and TradFi at Compound.

This hiring push signals that Compound might have numerous developments lined up for the future, which could lead to the overall growth of the platform with additional features and partnerships.

Price Updates Relating to Compound (COMP)

When we take a look at the value as well as the price updates, which are related to the Compound (COMP) cryptocurrency token, this is just about everything that you need to know.

As of April 15, 2022, the token is trading at a value of $141.98. The token reached its all-time high point of value on May 12, 2021, when it reached a value of $910.54.

When we look at the 7-day high of the token, it was at $155.33, while its 7-day low was at $177.03.

However, when we then took a look at the 24-hour performance of the token, its high was $147.98, while its low was $139.95.

The Compound (COMP) Community

The overall community surrounding Compound (COMP ) is actually large, and the official Twitter page has over 225,000 followers in total. Here is what some of the community members had to say.

Twitter user @BabzBam shared how Compound, alongside Synthetix, appear to be heading into greener pastures after posting over 26% in terms of gains throughout the last few days.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr"><a href="">#Compound</a> and <a href="">#Synthetix</a> appear to be headed to greener pastures after posting over 26% gains in the last few days. Still, the pioneer <a href="">#cryptocurrency</a>, <a href="">#Bitcoin</a>, shows a few red flags.</p>— Babatunde Ayobami (@BabzBam) <a href="">April 14, 2022</a></blockquote> <script async src="" charset="utf-8"></script>

After COMP’s listing on Robinhood, twitter user @MiguelMs69 shared their opinion surrounding the value of the token, claiming that it looks BULLISH.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">yes please, <a href="">#Compound</a> looks <a href="">#BULLISH</a> ladies and gentlemen's what do y'all think about it? <a href="">#community</a> <a href="">#cryptocurrency</a> <a href="">#CryptoNews</a> <a href="">#Etherum</a> <a href="">#RobinhoodCrypto</a> <a href="">@RobinhoodApp</a></p>— R∆NDØM¹¹¹ 🦄🥞🍇🍣 (@MiguelMs69) <a href="">April 14, 2022</a></blockquote> <script async src="" charset="utf-8"></script>

Another user, known as @ThePacoRoy commented on how some DeFi assets are defying the broader crypto market slump with significant gains, where he included Compound.

<blockquote class="twitter-tweet"><p lang="en" dir="ltr">Some <a href="">#DeFi</a> assets are defying the broader <a href="">#crypto</a> market slump with significant gains, including <a href="">#Thorchain</a> and <a href="">#Compound</a>.</p>— Paco Roy (@ThePacoRoy) <a href="">April 14, 2022</a></blockquote> <script async src="" charset="utf-8"></script>

Closing Thoughts

Hopefully, now you have a heightened level of understanding of what Compound (COMP) actually is, what the utility surrounding the COMP token looks like, the developments, updates, and the price at which the token was trading.

Remember that Compound is one of the pillars of Decentralized Finance (DeFi) and that with the numerous developments which might occur within the industry, alongside the massive appeal surrounding cryptocurrencies, the platform could eventually grow a lot further in terms of value and use-cases.

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