Young is pleased to announce the listing of Compound (COMP), one of the emerging DeFi protocols.
Compound is a protocol based on the Ethereum blockchain that allows you to grant and subscribe loans without the need for a financial intermediary.
How do loans on Compound work?
Users can deposit their cryptocurrency in loan pools to allow access to borrowers. Once they have made the deposit they receive a reward in cToken. For example, if they deposit ETH they will receive cETH, if they deposit DAI they receive cDAI and so on.
What is COMP?
To encourage this lending activity, Compound uses another cryptocurrency native to the protocol known as COMP.
Each time users interact with the Compound market – i.e. take out, give or repay a loan – they receive a reward in COMP.