Compound

Compound is an Ethereum-based decentralized platform that facilitates lending and borrowing of digital assets. To obtain loans through Compound, borrowers must provide a specified minimum collateral amount. The interest rates on Compound are determined by the dynamics of token supply and demand, which are governed by a crowd-sourced mechanism. As tokens are lent out to borrowers, those deposited in the Compound protocol accrue interest. This incentivizes users to participate in the lending and borrowing activities on the platform, fostering a dynamic and efficient ecosystem.