Compound is a decentralized algorithmic money market protocol running on the Ethereum blockchain that uses lending pools to facilitate loans in a variety of cryptocurrencies. Borrowers can take out collateralized loans, while lenders that make funds available to the lending pools can earn income on their deposits via specially-issued native tokens.

Put simply, Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. Lenders then earn interest on the assets they deposit. 

Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender. Examples of cTokens include cETH, cBAT and cDAI.

Each cToken can be transferred or traded without restriction, but it is only redeemable for the cryptocurrency initially locked in the protocol. This entire process is automatic and handled by the Compound code, meaning lenders can withdraw deposits at any time.

To incentivize this activity, Compound uses another cryptocurrency native to its service, called COMP. Every time a user interacts with a Compound market (by borrowing, withdrawing or repaying the asset), they are rewarded with additional COMP tokens.

While complex, the model has so far proved adept at attracting users and encouraging other DeFi cryptocurrencies to adopt its model.

Lending tokens on Compound are a great way to have your crypto holdings acquire compounding interest over time. Compound currently hosts 14 pools of different cryptocurrencies like Ethereum, Uniswap and also stablecoins like DAI. Each of these pools has different lending and borrowing interest rates which are the same for everyone independently of how many tokens they supply or borrow. You can hold your position within a pool for as long as you want and freely withdraw your funds as you please.

Quick reminder for crypto newcomers

Essential tools you need to succeed in crypto are a good exchange, safe hardware wallet and a reliable crypto tax tool.

If you plan to be a day trader, then a good charting tool and efficient trading bot are also a must.

If you plan to …

Essential tools you need to succeed in crypto are a good exchange, safe hardware wallet and a reliable crypto tax tool.

If you plan to be a day trader, then a good charting tool and efficient trading bot are also a must.

If you plan to be a holder, then why not put that crypto to work by borrowing it out on crypto lending platforms.

Below are our recommendations:

Exchange: Binance for highest liquidity and coin choice. Gate.io & KuCoin for gem hunters. ByBit for leveraged trading (Margex for really crazy leverages).

Safe hardware wallet: Ledger Nano X, Trezor or CoolWallet Pro.

Tax Tool: Koinly, Cointracking or ZenLedger.

Charting tools & bots: Bitsgap, Coinrule or Cryptohopper.

Lending platforms: BlockFi (for US residents), YouHodler (for EU and rest of the world).

Below is a tabular overview of how will COMP develop in the short-term (for the next 90 days), according to our prediction model:

Our prediction model sees a temporary switch to a bear market at the beginning of 2022 before we move onto another leg up in Q3 & Q4 of 2022.

Our prediction model sees COMP reaching new highs in 2025:

COMP price in 2030 & 2040 should be a couple of orders of magnitude higher than our 2025 prediction.

The post Compound Coin Price Prediction 2022 – 2025 – 2030 | COMP Price Forecast appeared first on CaptainAltcoin.

Similar to Notcoin - TapSwap on Solana Airdrops In 2024

origin »

277 +