What is Compound?
Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes and is based in San Francisco, California. It's a completely decentralized bitcoin lending platform built on Ethereum blockchain protocols. The Platform has over $11B assets under management, with interests in 18 markets.
Compound was initially a centralized organization, but after the recent release of its native governance token, COMP, the first step toward transforming Compound into a community-governed decentralized autonomous organization was taken (DAO).
Customers can lend or borrow at the same time about 12 Ethereum-based assets such as BAT, ZRX, and WBTC using Compound Protocol.
Furthermore, a distinctive element of the platform is that it delivers a frictionless and simply manageable platform by employing smart contracts algorithmically determined interest rates, reducing unwanted nuisances that one could encounter in a regular financial banking system. The platform has introduced Yield Farming, an innovative crypto-economy that has increased users' borrowing power.