Deep Dive
1. Lending and borrowing
Compound creates lending markets for supported crypto assets. Suppliers deposit assets into a market; borrowers take loans by providing collateral. Interest rates adjust with supply and borrowing demand, and insufficient collateral can lead to liquidation. CoinMarketCap’s Compound overview
2. COMP and governance
COMP is Compound’s governance token. Holders can vote on protocol decisions, such as market settings and supported assets, or delegate their voting power to someone else. COMP provides governance rights; holding it does not by itself mean a holder receives lending interest. Compound governance
Conclusion
Compound is an onchain lending system, and COMP is the token used to participate in decisions about how that system operates. Which part would you like to explore next: how lending works or how COMP voting works?
