Compound Finance (COMP) - a cryptocurrency with 100% certainty

We can deposit cryptocurrencies to earn interest, but also withdraw it at any time. The greater the demand for loans, the more we earn. The smart contract itself manages the surplus so that everyone can easily withdraw from the investment at any time - this is how the decentralized Compound Finance platform works.

We continue the cycle of the Forex Club portal, in which we analyze and describe the largest, highest-valued, most interesting, most developmental, advanced and also the most controversial cryptocurrency projects around the world. Today it's time for Compound Finance - a decentralized platform based on blockchainwhich many believe has a great chance of becoming the first decentralized financial service to be widely used. 

How Compound Finance works 

The decentralized platform is based on Ethereum and for now it mainly supports ERC-20 tokens. Thanks to it, you can take loans for any purpose and amount, provided that you deposit cryptocurrencies as collateral. The loan amount is provided by investors who decide to invest their cryptocurrencies there in return for the interest earned. 

Interest rates are set on an ongoing basis by a smart contract, which automatically calculates it taking into account the supply and demand for specific cryptocurrencies. After depositing crypto assets in a smart contract, we receive the so-called Ctokenwhich correspond to the value of the paid rate. On the other hand, our cryptocurrencies go to the borrower, and we get the interest in C tokens - e.g. cETH, cUSDC etc. At any time, we can convert them back to the "classic" cryptocurrency - we do not have to wait for the loan to be repaid by the person or company that took it. Why? Because the decentralized protocol manages the funds so as to maintain the proportions between the funds that can be borrowed and those that have already been deposited. It's pure math, so insolvency just can't happen. Of course, the value of the cryptocurrencies themselves may drop, but this is a completely different matter, independent of the business model adopted by Compound Finance. Especially since the valuation of cryptocurrencies may also increase significantly, which was more likely in recent years. And then everyone will earn, and those who decide to invest cryptocurrencies will earn the most, because not only will they receive interest, but they will also have more expensive cryptocurrencies.

Currently supported include almost all ERC-20 tokens, but the choice will increase over time. Now you can choose from such well-known cryptocurrencies as: Ether, DAI, USDC, Basic Attention Token, USDT, Augur, Wrapped Bitcoin, SAI or 0x. The entire community, which has COMP tokens, votes to approve the next ones - each holder has a vote proportional to the number of units, and all decisions are made completely transparently. As a result, Compound Finance is considered not only one of the most popular but also the most promising DeFi loan protocols.

COMP token quotes

The COMP token, listed since mid-2020, has hit the world of cryptocurrencies by storm. As of January 28, 2021, there are already 3 units on sale, out of the planned 226 million, which translates into a capitalization of over USD 900 million. For each COMP token, you now have to pay $ 10, and the peak of quotes took place on September 744, 230,81, when they were valued at $ 1. Comp tokens can now be traded on 2020 cryptocurrency exchanges around the world, and the number of providers to trade them is constantly growing.