COMP, or Compound Finance, is a blockchain platform in the form of Decentralized Finance (DeFi) that enables users to both borrow and lend various digital currencies through the enacted Smart Contract. With only an Ethereum-based Wallet, users are able to access Compound Finance.
The platform is characterized by its pool of accumulated digital currencies that have been inputted by users’ deposits, allowing other users to borrow these funds with the catch of having to return them on time with additional fees that fluctuate in accordance with the current systematic supply-demand rate.
Both borrowers and lenders are provided with the COMP coin, which signifies cooperation of the protocol. The COMP coin is a Governance token, providing holders the rights of proposing changes and voting for others’ proposals to help democratically manage the system.