Decentralized finance is on everyone's lips, but do you know who kicked the movement off? Yeah, that would be Compound protocol, the game-changing DeFi money market protocol at the center of the movement.
See, while cryptocurrency investors were pitying themselves over a multi-year bear market, the Compound team was hard at work building a revolutionary way to do finance and earn interest.
COMP, the native token of the Compound protocol, is now available for trading at Flyp.me accountless cryptocurrency exchange. With Flyp.me, you'll never have to create an account before trading.
- Go to Flyp.me — select the cryptocurrency you will use to exchange, then enter your COMP wallet destination address and the amount to be exchanged.
- Enter a refund address for the cryptocurrency wallet you are exchanging from (i.e., if trading with BTC, enter a BTC wallet address).
- Send cryptocurrency to the Flyp.me transfer wallet address.
- Boom! Flyp.me will instantly & safely send COMP to your destination wallet.
Flyp.me is built to protect your security, use Flyp.me to get the digital assets you want without creating a new account.
Anyway, COMP is the reason you're here, right? So, let's check out what it's all about. Here are a couple of time-saving pointers.
Compound DeFi Money Markets Are Revolutionary
The money market concept in cryptocurrency is unlike any other. The way it works is incredibly simple:
- You supply coins to the Compound protocol.
- Another user borrows those coins at a predetermined interest rate.
- You earn interest on the supplied coins as the borrower pays off the loan.
While this whole process resembles traditional lending, there are a few key differences.
- Traditional lending platforms don't work with cryptocurrencies.
- Traditional lending platforms are centralized.
- Traditional lending platforms offer low yields.
When you lend your coins using Compound, your APY tends to be much higher than it would be through traditional means. The amount of return you can expect varies by market, but generally speaking, lending DAI, USDT, USDC, or other stablecoins nets returns between 3% and 12%.
Try finding a traditional high yield savings account that comes even close to those returns — but, just to warn you, the search is futile.
The stellar returns aren't the revolutionary part, however. What's revolutionary is the fact that the entire lending process is accomplished in a wholly decentralized manner. Compound protocol's smart contracts process every aspect of the network's operations, enabling users to conduct complex financial arrangements with absolute trust.
How COMP Tokens Work
You can earn and borrow money using the Compound DeFi platform, but where does the COMP token come in? Well, we're glad you asked.
Since the Compound protocol is run by smart contracts, who oversees those contracts? Who decides what changes happen on the network, and when?
COMP token holders make all of those decisions. If you hold COMP, you're entitled to make governance decisions about the network's direction, directives, and structure. Therefore, having COMP is a bit like being on Compound's board of directors — a position you'll share with thousands of token holders around the world.
Ready to grab hold of some COMP for the long term? Jump over to trusted instant crypto exchange Flyp.me where you can get COMP tokens without an account.