Compound
Compound is a leading decentralized finance lending and borrowing platform built on the Ethereum blockchain. Founded in 2018, Compound is designed to make crypto-based lending and borrowing transparent, efficient, and accessible, positioning it as a foundational protocol within the DeFi ecosystem. By leveraging Ethereum smart contracts, Compound removes the need for traditional financial intermediaries. Users can supply supported crypto assets to earn algorithmically determined interest or borrow assets by posting crypto collateral, all through a fully on-chain, non-custodial system. Compound has become a widely used DeFi protocol and is integrated across the digital asset infrastructure ecosystem. The platform works alongside leading industry institutions and service providers such as Coinbase Custody, Anchorage Digital, Ledger, Fireblocks, and BitGo, helping to support secure access, institutional adoption, and broader market participation.
ABOUT COMPOUND
Compound is a leading decentralized finance protocol that enables users to lend and borrow cryptocurrencies in a transparent, automated, and non-custodial way.
Built on the Ethereum blockchain, Compound has become one of the most widely used DeFi lending platforms by allowing users to earn interest on their crypto assets or access liquidity without relying on traditional financial intermediaries.
As an open-source software development platform, Compound builds tools, products, and infrastructure that power decentralized money markets.
The protocol emphasizes security, capital efficiency, and radical transparency, helping to bring paradigm-shifting financial technologies to the broader crypto ecosystem.
FEATURES & SERVICES
Decentralized Lending and Borrowing – Users can supply crypto assets to liquidity pools to earn interest, while borrowers can access liquidity by posting overcollateralized crypto. All activity is governed by audited Ethereum smart contracts, eliminating the need for intermediaries.
Interest-Earning Crypto Supply – Compound supports a range of assets, including ETH, USDC, DAI, and others. Depositors earn algorithmic interest that compounds over time and adjusts automatically based on market conditions.
Crypto-Backed Borrowing – The platform allows users to borrow against their crypto holdings without selling them, enabling access to liquidity while maintaining exposure to underlying assets.
cTokens and Tokenized Positions – When assets are supplied to Compound, users receive cTokens that represent their deposits plus accrued interest. These tokenized positions can be redeemed at any time or integrated across other DeFi applications.
Algorithmic Interest Rate Model – Compound uses a transparent, rules-based interest rate model that adjusts rates according to utilization levels within each asset pool, balancing incentives for lenders and borrowers.
Risk Management and Liquidation Mechanisms – To maintain system stability, Compound employs automated liquidation processes. If a borrower’s collateral ratio falls below required thresholds, liquidators can repay part of the loan in exchange for collateral at a discount.
Decentralized Governance with COMP – The protocol is governed by the COMP token, allowing the community to propose and vote on upgrades, asset listings, and risk parameters through on-chain governance.
Institutional and Infrastructure Integrations – Compound integrates with leading digital asset custody and infrastructure providers such as Coinbase Custody, Anchorage Digital, Ledger, Fireblocks, and BitGo, supporting secure access and institutional participation.