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Compound

A decentralized finance (DeFi) protocol allowing users to lend and borrow assets.

Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset. Suppliers (and borrowers) of an asset interact directly with the protocol, earning (and paying) a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.

Example:

Earning interest by supplying Ether to the Compound protocol.

Category:

DeFi
Crypto Accounting
Crypto Basics
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