The evolution of blockchain and cryptocurrencies has created a new ecosystem with many investors’ traders, and enthusiasts. Decentralized finance offers finance instruments similar to the ones available in a bank. But allowing borrowers to take out loans and lenders to provide loans by locking their crypto assets should be developed. Imagine that instead of depositing your money into the bank, you send your crypto to the decentralized network. Like lending to a bank, you immediately begin earning interest on your crypto. The good you make is denominated in the same token you lent, meaning if you sent a tether, you are interested in the tether.
Compound (COMP) Coin Live Price, Market Cap, Volume, Supply.
What Is Compound Protocol, And How The System Works?
Let’s discover this autonomous interest rate protocol built for developers to unlock a universe of open financial applications. like most decentralized finance protocols compound is a system of openly accessible intelligent contracts built on Ethereum the system works like this when a user locks in funds on the lending side of the compound protocol they receive c tokens or digital assets representing the amount that they have deposited examples of c tokens include c f c bad and c die c tokens are an er 20 token built using the Ethereum blockchain protocol.
There are different c tokens for each crypto on the compound. This entire process is automatic and handled by the compound code, meaning lenders can withdraw deposits at any time. Owners of the tokens can transfer, trade, or use them on other apps. While used throughout the defy ecosystem, the tokens will continue to earn interest on the compound protocol. Locking up USDC in the protocol generates CUSD tokens that automatically earn interest whenever you can redeem your CUSDC for standard USDC.
Plus, interest paid in USDC interest rates is calculated by the supply and demand of each crypto asset. In addition to earning interest on your crypto assets, the compound allows you to borrow additional crypto assets through c tokens generated each time a user deposits their crypto assets into the compound protocol. Both lenders and borrowers compound deal directly with the protocol, which sets the interest rate algorithmically and without requiring users to negotiate terms.
Non-technical users can interact with the compound protocol using an interface like argent coin base wallet or app.compound.finance developers can create their applications that interact with compound intelligent contracts. When it comes to the governance of the compound, it is slowly decentralized, and it is all thanks to the Compound tokens. These tokens entitle the users who hold these tokens to governance rights and fees over the protocol.
Lending And Borrowing
Compound connects lenders and borrowers using a combination of smart contracts running on Ethereum and incentives paid in cryptocurrency lending. Anyone wishing to lend a cryptocurrency to the compound can send their tokens to an Ethereum address controlled by the compound to earn interest, also called locking, sending, or depositing. It is similar to depositing fiat currency into a savings account that starts making interest immediately after borrowing.
Deposit And Locked Funds
The other main feature of the compound protocol is the ability to borrow against deposited and locked funds. Anyone who posts collateral on the compound as a cryptocurrency. Can borrow cryptocurrencies supported by the compound at a percentage of the assigned value. The amount a user can borrow depends on how much they deposit, and each cryptocurrency has different rates. Like many defy projects, the compound also operates on the principle of over-collateralization. It means that users who want to borrow have collateral that is more than what they want to borrow.
That way, the lender in the system is exposed to zero risk. To sum up, compound and define more broadly wants to help people have more access and control over the money they earn and save. Compound finance aims to be fully decentralized over time and transfer the authority of the underlying protocol to the decentralized autonomous organization governed by the compound community.
Compound Chart Analysis and Price Prediction, 2024
Now we’re looking at the compound user price chart, which should be getting some compound. Currently, compounds are down from the all-time high of 890 dollars. It got to as low as 26 dollars, represented in 97 percent dump. Should we buy compounds right now is the bottom in also looking at compounds performance against Bitcoin compounds performance against Ethereum. We can also look at the compound market cap valuation chart.
The last one year compound is down 8.5 percent in the previous one month is down 8.1 percent when the last one week and the last one the compound has seen signs of life it’s up 8.9 percent in the previous week and up 9.2 percent at the point. All coins are having a good time. They’re pumping compound, included. Should we be getting some compound right now? If the dump is over, I’ll lose the compound us dollar price starting from June 2020 till July 2022 compound has been here for barely two years, so it has not been through a crypto BA market.
It was launched when the market was only up, and the compound had a little pump in 2020. It went from October 2020, when the compound was trading for 82 dollars, it went to as high as $890 in May 2020, representing a 10x return on investment.
But since then, guys’ compound has been dumping hard. It has lost more than 96 percent of its value in the bottom infra compound. All are just getting faked out. You can see that compound was dumping. We’re getting some relief rallies on the way. We had one right here in August, entering September.
We had another one in March 2022, entering April. Right now, are we having that same relief rally? They’re just getting us faked out, so I will continue going to goblin town, or is the bottom in from the all-time high compound phase lost 78 percent before it had a pump? It had a 150 percent pump. It was in September 2021, and those plagued upon got faded out. Because the compound lost another 80 percent, we got another pump to get us excited again. This pump was just 92 percent. It was a reduction from the pump we had right here.
So we had a 150 pump right here. We had a 92 percent pump, but then we had another dome. This is getting frustrating if you’re holding compound from 197 dollars compound went to as low as 29 it lost another three percent.
So compound has been dumping hard. You can see that when the market is going down. Compounds are one of those complicated dumps, but when the market is pumping, you want to hold some compound because the compound will be pumping. Now from the bottom of the market that came in on 15th June 2022 compound has risen over 74 percent.
The million-dollar question is, should we buy a compound right now, or should we feed this pump because we’re going back to cobbling down, guys? We won’t compound to claim this critical level on this level where price has interacted with compound if the compound can claim it’s a three dollar region, and that will probably be a good sign.
But right now, we still believe it’s three dollars. Even when we were consolidating around in march 2022, I can see that we didn’t even get to as losers. It’s three dollars, so I’ll need compounds past this level. It is the line in the sand for compounds if you can pass this region, and this was launched price for combinations. It was established in 2020, and we got around that origin back in October before it went to the pump.
Even when we stayed dumping in march 2022 before we finally went to goblin town, you can see that that’s area accident as support for us. So I’ll need compound to come back to tesla’s 83 293 regions if you can pass this region and maybe just maybe, and the time is right to buy some compound.
But guys, if you want to wait for bitcoin to find this bottom, many of these coins can skip dumping. Yes, we’ll have some rallies here, and they’re during the bear market, and you can compound pumping right now. If we get to that, it’s a three-dollar region from the bottom compound. I’ve pumped 280 percent, which is a good return on investment. But considering holding a compound for the long haul, you must consider the cost average. You don’t want to go all in on these all coins during the bear market. You can get a lot of these all coins for a cheap look at compound if you get compound hair trading for 20.
When the compound goes to a new all-time high, you would have been up over three thousand three hundred percent on your investment, so, if you invested one thousand dollars a compound in the bottom right here if it gets to the top if you hold through the chaos. It gets to the top. Your one thousand dollars would have returned over thirty thousand dollars.
How Is The Compound Performing In The Bear Market?
Compound markets cup went from as high as 4.5 billion on the top of the bureau in may 2021 to as low as 196 million dollars which represented a new all-time low and that was a 95 percent drop from the all-time high it has pumped from that slow weight set 192 million dollars. compounds market cap has gone as high as 368 million dollars it’s nice to see 1096 percent pump but guys we need to break that resistance that level has been a level that has been very very critical for compound you can see that compound is back to the first don’t be hard after launch date component launcher in June 2020.
My price interacted with this level here August 1020 even 400 mega pump in 2020 price came back to this region right now prices in that region i won’t get rally probably getting compound’s market cap to around one billion dollars or above only time retail right now. so guys drop your thoughts in the comment section at what price point will be getting some compound for yourself through the bear market.
Cryptocurrencies are also highly volatile, so your cash can go down and up in the blink of an eye. As always, you should never invest in something you don’t understand. What are your thoughts about compound protocol? Would you use or invest in it.
What is compound Comp coin?
Compound (COMP) is an Ethereum-based token that allows the community to govern the Compound protocol.
Is compound crypto safe?
While Compound isn't 100% safe (nothing is), it's one of the safest and most established blockchain projects.