COMP Compound

關於 Compound

Compound is a decentralized money market protocol built on the Ethereum blockchain. Project vision: Construct a multi-currency money market fund to provide a money market for the mutual integration of different currencies internally. Market demand: Compound is a protocol based on Ethereum that is used to establish a fund pool based on changes in the supply and demand of assets and calculate the interest rate by algorithm. The supplier and borrower of the asset interact directly with the agreement to earn or pay floating interest rates. The Compound protocol attempts to solve the liquidity problem through the money market system, and most cryptocurrencies are currently idle in exchanges and wallets, and asset owners do not have corresponding interest. solution: The COMP token incentive model uses "stocks" to subsidize both borrowers and lenders, allowing lenders to get higher returns and borrowers to get lower interest rates. The behavior it motivates is that lenders have more deposits and borrowers have more loans. The combined use of tokens encourages both depositors and lenders to actively deposit and lend to improve the liquidity of the Compound market. COMP will be distributed to users of the protocol for free, as long as users use the Compound protocol for lending and borrowing transactions. And the more you borrow, the more COMP you get. This process is called "borrowing is mining". The specific mechanism is as follows: 4,229,949 COMP tokens are placed in a "Reservoir" smart contract, and each Ethereum block will transfer 0.5 COMP (that is, about 2880 COMP per day), which means that It will take 4 years for all to be distributed; COMP will be allocated to each lending market (ETH, USDC, DAI, etc.), based on the interest generated in the market as a proportion, which means that the allocation ratio will change at any time; In each market, 50% of the COMP will be allocated to the asset provider, and 50% of the COMP will be allocated to the borrower, and users can obtain it according to the proportion of their own assets in the market; Once an address gets 0.001 COMP, any transaction in Compound will transfer the corresponding COMP to their address, and for smaller amounts, you can also collect the obtained COMP by yourself.