We present a complete guide to understanding Compound (COMP) Crypto and it’s technology in the field of cryptocurrency development. We include helpful explanations, illustrated guides, historical data, and technical details. This article is brought to you by Digital Financial Market
Compound (COMP) Cryptocurrency
Compound is a Cryptocurrency lending platform where users can deposit their crypto for a “staked” liquidity token that can be traded, lent, or staked much like the initial cryptocurrency token. These staked token have a pre-ceding “c” and represent the reflected deposit (Ex. ETH becomes cETH)
These “c” tokens may change hands many times, but can only be redeemed for the underlying token. The Network is built on the Ethereum Blockchain and uses the cryptocurrency COMP for transactions.
See Compound Finance Official Website
Key Point of Compound Finance
- Decentralized Finance (DeFi) Lending Platform
- Ethereum-Based token by the name COMP
- Liquidity pool hub for cryptocurrency lending
- Staked tokens can be exchanged for tokens representing the initial deposit (BTC = cBTC)
Compound (COMP) Price Chart
Compound (COMP) Historical Price Chart
History of Compound Cryptocurrency
The Compound Finance project and company was created by entrepreneurs Geoffrey Hayes and Robert Leshner.
The project began with a $8.2 Million round of private funding prior to the COMP public Initial Coin Offering (ICO). Later that year, the COMP Token went live on the Ethereum Network in June of 2020.
Compound Finance Hack of 2021
In September of 2021, the Compound community had an issue in rewards for their liquidity mining program. By early October 2021, a vulnerability in Compound Finance allowed a hacker to drain an amount of over 52,000 ETH and additional COMP tokens amount drained to $22 Million USD at the time.
See Coindesk’s full Article on the Compound Hack
Compound (COMP) FAQ
Is Compound Finance A ERC-20 Token?
Yes, Compound Finance is an Ethereum-based Cryptocurrency
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Image Source: Compound Finance Review – DeFi Rate