Compound/COMP#126 21

What is Compound (COMP) Crypto?

Compound cryptocurrency is a Layer 2 decentralized finance (DeFi) protocol that operates on the Ethereum blockchain. It allows users to lend and borrow tokens from each other through automated smart contracts. Designed as a decentralized alternative to traditional finance, Compound Finance permits users to earn interest on their assets or borrow against their crypto-assets. The parameters of governance and rewards are financed by its native ERC-20 token called COMP. Compound Protocol, on which the COMP Coin operates, was founded by Robert Leshner and Geoffrey Hayes in 2017 and launched its mainnet on the Ethereum blockchain in September 27, 2018.

What Makes Compound Unique?

The uniqueness of the Compound is that it has an incentivized and decentralized approach to finance. Users are rewarded with COMP tokens for lending and borrowing; they obtain not just rewards, but governance rights as well. This governance allows token holders to vote on critical decisions including the interest rates and updating the protocol, establishing a community-driven ecosystem.

The security of Compound is provided by the Ethereum network, seeing that it is a decentralized application (dApp) developed on the Ethereum network. Every part of protocol management is run autonomously by smart contracts, and the governance system protects its future path through transparent collective decision-making.

What is the COMP Token?

The COMP token is the native currency of the Compound protocol. Holders of the COMP propose and vote to modify the protocol and ensure decentralized governance. COMP incentivizes engagement, rewarding participators for borrowing, lending, or interacting on the platform. 

COMP Coin Performance History
The COMP token for Compound was first introduced during a Token Generation Event (TGE) that took place on June 16, 2020, listing at an initial COMP price of $100.12. The first application on which Compound was launched was on Coinbase, effectively introducing it to the crypto market. The total supply of COMP is capped at 10 million, with a circulating supply of 8.9 million. Select angel investments for Compound include its Series A fundraising round, which raised $25 million in 2019, and its Seed Round of investments, which gathered $8.2 million in 2018. 

Since launch, Compound has experienced several upgrades as follows:

Compound v2: 

• This was the second version of the decentralized finance (DeFi) protocol developed to facilitate the lending and borrowing of cryptocurrencies through smart contracts. Launched in 2020, it introduced innovations such as liquidity pooling and decentralized governance via the COMP token; however, v2 is getting closer to deprecation as Compound matures after going through its night phase in favor of Compound III.

Compound III: 

• Its mainnet launch happened in August 2022, allowing USDC to be borrowed with ETH, WBTC, LINK, UNI, and COMP as collateral.

• In March 2023, Compound III was deployed on Polygon and supported WETH, WBTC, and MATIC as collateral.

• In May 2023, Compound was deployed on Arbitrum following the passage of proposal 160.

• In August 2023, Compound III went live on Base, supporting ETH and cbETH as collateral. 

Where to Buy COMP (Token)?

You can trade Compound (COMP) tokens on numerous platforms, including Ledger Live, OKX, Binance, Crypto.com, and imToken, with Zapper and Exodus being additional choices. The platforms allow for both direct and DeFi-integrated purchase of COMP with secure storage and transactions. 

Thereafter, the COMP tokens can be earned on three other platforms, including PoolTogether, which is a no-loss lottery where interest earned via Compound goes into a large prize pool. This allows you a chance to earn COMP tokens while risking nothing by investing your principal. 

Top wallets to store COMP (Compound) tokens?

The best wallets to store COMP coins are MetaMask, Trust Wallet, and Ledger for their friendly interfaces and unbreakable security. 

The Coinbase Wallet also supports COMP with easy access to dApps. SafePal, imToken and TokenPocket provide additional mobile-friendly options for secure transactions and wallet management of COMP tokens. 

Other options include ImToken, Zapper, and Exodus for managing and purchasing COMP through their integrations with Compound and other DeFi apps.

Compound Coin Prediction 2025-2030

• According to Coinpedia, the price prediction estimates for Compound in 2025 range anywhere between $67.15 and $151.93, averaging $119.54.

• By 2026, while prices could range between $141.38 and $207.46, they are likely to increase.

• 2027 predictions put prices between $199.36 and $248.31, with an average of $223.83.

• By 2028, its values could rise to $224.19-$294.65.

• By 2030, Compound's price will be rated between $336.14 and $412.66.

• The optimism is based on expectations from Compound to secure key partnerships and attract adoption.