Recently, COMP token must be interested by many brothers when Coinbase, FTX and Binance are listed together.
So, what is COMP, which is so favored by exchanges?
Brothers and sisters learn through this article!
- 1 What is compound?
- 2 How does compound work?
- 3 What is COMP Token?
- 4 Key Metric
- 5 Token Allocation
- 6 Token Sale
- 7 Token Release Schedule
- 8 Compound Rate (COMP) today
- 9 How to earn COMP?
- 10 The wallet stores COMP tokens
- 11 Where to buy and sell COMP tokens?
- 12 The future of COMP
- 13 Should I invest in COMP?
- 14 Epilogue
What is compound?
Compound is a protocol that allows users to lend and borrow crypto assets without going through any third party.
How does compound work?
The operational nature of Compound is a Liquidity Pool Asset (LPs), where the lender will transfer the crypto assets and the pool to create liquidity in return will receive interest.
Borrowers entering the property pool who need to borrow and borrow money in return must be mortgaged by a type of property supported by Compound.
What is COMP Token?
Compound Governance Token (COMP) is an governance token that is used to influence important decisions of Compound Protocol through Voting.
The total fixed supply of COMP is 10 million tokens and is distributed in the following proportions:
- 42.3% is allocated to Compound User via Liquidity Mining for 4 years.
- 24% belongs to shareholders of Compound Labs, Inc.
- 22.25% is held by founders & team with a vesting period of 4 years.
- 7.75% is allocated to the community, stimulating voting.
- 3.72% as a budget for future team participants.
Compound does not host any token sale events.
Instead, Compound Labs raised $ 33.2 million through two funding rounds:
- Seed Equity ($ 8.2 million)
- Series A ($ 25 million) comes from reputable investment funds like Coinbase Ventures, Andreessen Horowitz (a16z), Polychain ...
Token Release Schedule
Currently, Compound has just announced how to distribute COMP tokens of Liquidity Mining. All the rest have not been announced.
Specifically, COMP will be distributed as follows:
- For every block of Ethereum created, 0.5 COMP will be sent from the smart contract to the compound protocol. The average estimate will be about 2,880 COMP distributed in a day and it will take 4 years to distribute all tokens.
- The COMP number sent to Protocol will be allocated according to each type of assets proportional to the cumulative interest in the market.
- The number of COMPs divided by each type of Assets is divided between 50% for borrowers and 50% for suppliers, as shown below.
Compound Rate (COMP) today
How to earn COMP?
With the distribute method above, you can become suppliers of a type of asset on Compound Protocol to mine COMP.
However, you will be competing with the big funds because they have more money, which means the% of their COMP is bigger and the% COMP you can receive will be lower.
The wallet stores COMP tokens
You can also store COMP tokens on reputable exchanges that have COMP listed.
But, if you store for a long time you should store it on hardware wallets like Ledger Nano S, Trezor, imToken.
You can refer to the article about the storage wallet that I mentioned above, Coin98 has articles for those you are interested.
Explore more: Types of hosting that interest you
Where to buy and sell COMP tokens?
According to the data of CoinGecko, COMP token has been traded on exchanges such as Coinbase Pro, Binance, Uniswap V2 ... with a total trading volume in the past 24 hours reaching $ 35 million.
The future of COMP
At present, COMP is only for the sole use that is Governance. That is, holders of COMP have the right to vote (voting) decisions related to the development of Compound.
If Compound is growing more and more people use it, the amount of loan and loan is large, COMP will be more valuable and vice versa.
Should I invest in COMP?
After going to Uniswap V2, COMP's price has continuously peaked with the highest price of $ 372, up 20 times in value. So terrible!
But with the pump so high, do you think this is a good time to buy it or not? Not to mention the current incentive of COMP is just 01 token Governance.
Decentralized financial trends - DeFi is a bright spot in 2020 and COMP is the first trigger to make the market start paying attention and FOMO is more about DeFi than ever.
By surpassing MakerDAO, Compound officially became the No. 1 project in DeFi.
Maybe you are interested in: What is MakerDAO & DAI? All about tokens in the MakerDAO & DAI ecosystem
Will COMP prices increase? Please leave your comments in the comment section at the end of the article.
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Hello and see you again in the upcoming article!