What Is Compound?Compound is an EVM compatible protocol that enables supplying of crypto assets as collateral in order to borrow the base asset. Accounts can also earn interest by supplying the base asset to the protocol.
Use Cases● Without having to wait for an order to fill, or requiring off-chain behavior, dApps can borrow tokens to use in the Ethereum ecosystem, such as to purchase computing power on the Golem network
● Traders can finance new ICO investments by borrowing Ether, using their existing portfolio as collateral ● Traders looking to short a token can borrow it, send it to an exchange and sell the token, profiting from declines in overvalued token
Implementation & ArchitectureAt its core, a Compound money market is a ledger that allows Ethereum accounts to supply or borrow assets, while computing interest, a function of time.
SecurityThe security of the Compound protocol is our highest priority; our development team, alongside third-party auditors and consultants, has invested considerable effort to create a protocol that we believe is safe and dependable.
All contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities.