Description

Compound Finance – Algorithmic interest rates

Compound Finance is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies with algorithmically determined interest rates. Built on the Ethereum blockchain, Compound provides an automated, permissionless, and transparent money market where users can earn interest on their assets or take out overcollateralized loans.

Key Features:

• Algorithmic Interest Rates: Supply and demand dynamically adjust borrowing and lending rates in real-time.
• Decentralized Lending & Borrowing: Users can deposit assets to earn interest or borrow against collateral without intermediaries.
• Overcollateralized Loans: Borrowers must provide collateral greater than the loan amount to maintain system stability.
• cTokens (Interest-Bearing Tokens): Depositors receive cTokens (e.g., cDAI, cETH), which accrue interest automatically.
• COMP Governance Token: Holders can vote on protocol upgrades, risk parameters, and interest rate models.
• No Fixed Loan Terms: Borrowers can repay loans anytime without predefined repayment schedules.
• Multi-Asset Support: Supports various cryptocurrencies, including ETH, DAI, USDC, and more.
• Security & Transparency: Fully decentralized and audited smart contracts ensure trustless transactions.