WHAT IS THE COMPOUND PROTOCOL?

Compound is a decentralized finance (DeFi) protocol built on the Ethereum blockchain that allows users to lend and borrow cryptocurrencies without the need for traditional intermediaries such as banks. The platform uses smart contracts to facilitate these transactions without depending on a central entity.

On Compound, users can deposit cryptocurrencies as collateral and receive loans using those collateral. The interest generated by the loans and paid by the borrowers is distributed among the liquidity providers in the protocol. The platform also uses a decentralized governance model, where holders of the native COMP token can participate in decision-making regarding protocol development and upgrades.

In short, Compound is a DeFi platform that allows users to earn interest by lending cryptocurrencies or borrowing using cryptocurrencies as collateral, all without the need for traditional intermediaries.