On Coinbase Earn, the education platform of the American crypto broker, users get COMP by answering small quizzes that revolve around the new DeFi protocol. Coinbase is jumping on the new DeFi hype of recent weeks. COMP was able to multiply its course in a short time and to become the leading DeFi protocol. Compound, in terms of market capitalization, has succeeded in knocking the Maker protocol off the throne. More than $ 600 million is currently logged into the log.
What Compound is All About
Compound is initially a platform that wants to bring liquidity to the DeFi ecosystem. Users can both lend and borrow money. The concept corresponds to passive income: those who lend money receive interest. The new COMP token now gives users co-determination rights on the compound platform. As can be seen on the Compound homepage, the Ethereum-based token enables users to delegate their participation rights in the compound ecosystem. As with so many DeFi platforms, the success of the COMP token is closely related to the success of the platform itself. If the platform is used frequently, it can be attractive for users to acquire participation rights there, which in turn could have a positive effect on the course.