COMPOUND STATISTICS
Like $AAVE and $MKR , lending protocols are the greatest beneficiaries of TRENDS.
Here are some key metrics pertaining borrowing activity in the Compound Network:
1) Total Borrowing: Compound's borrowing is backed by a substantial amount of collateral across various markets. For instance, on the Ethereum network alone, there are hundreds of millions of dollars in borrowing for assets like USDC, USDT, and ETH.
2) Token Incentives: The Compound protocol uses its native $COMP token to incentivize both lenders and borrowers. Users are rewarded with COMP tokens for interacting with the protocol, and the amount received is related to the interest rates of each asset and the number of transactions.
3) Interest Rate Mechanism: Like Aave, Compound's interest rates are automatically set based on the supply and demand for each crypto asset. When liquidity is scarce, interest rates increase to encourage new deposits and loan repayments.