Compound protocol
Overview
Compound is a decentralized finance (DeFi) protocol on Ethereum that allows users to supply assets to liquidity pools to earn variable interest or borrow assets by overcollateralizing. It is classified as a money market protocol. The protocol algorithmically sets interest rates based on supply and demand.
Within the DeFi Intel graph, Compound connects to 5 tracked entities, most strongly to Compound III, Robert Leshner, COMP.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 5 of 5 total).
| Relation | Connected entity | Confidence |
|---|---|---|
launched | Compound III | 95% |
founded | Robert Leshner | 95% |
departed | Robert Leshner | 95% |
issued_by | COMP | 95% |
governed_by | COMP | 95% |
Company intelligence
Compound is a decentralized, algorithmic interest rate protocol built on Ethereum that allows users to lend and borrow cryptocurrencies.
Investors
- Andreessen Horowitz Venture Capital
- Khosla Ventures Venture Capital
- Canvas Ventures Venture Capital
- Sequoia Capital Venture Capital
- Coinbase Ventures Venture Capital
- Polychain Capital Venture Capital
Partners
- Chainlink Oracle
- Uniswap DEX
- Coinbase Exchange
- Polygon Layer 2
Products
- Compound Protocol Lending / Borrowing
Funding
Key people
- Robert Leshner CEO
- Andrew Hsu COO
- Evelyn Huang CFO
Timeline & market context
Amber line: BTC price over the last year. Dots: dated events (hack/incident red, fundraise green, partnership blue, launch purple, regulatory amber, news grey).
Frequently asked questions
What is Compound?
Compound is a decentralized lending and borrowing protocol on Ethereum where users earn interest by supplying assets or borrow assets by providing collateral.
How does Compound determine interest rates?
Interest rates are determined algorithmically by a utilization rate model that adjusts rates based on the ratio of borrowed funds to total supplied liquidity in each market.
What is the COMP token used for?
COMP is the governance token of Compound, allowing holders to propose and vote on changes to protocol parameters, such as interest rate models and supported assets.
What is Compound connected to?
In the DeFi Intel knowledge graph, Compound is linked to 5 other tracked entities, most strongly to Compound III, Robert Leshner, COMP.
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