Compound is a decentralised lending platform on the Ethereum network.
In a nutshell, users deposit assets with Compound to earn interest, while others can borrow those assets by paying interest. It functions in a similar manner to a bank, but with an automated protocol replacing the branches, infrastructure and authority of traditional banks.
Lending pools are created for each asset, with interest rates determined on a supply-demand basis. If people want to borrow a scarce asset, the interest rate goes up. If there’s more supply than demand, the interest rate goes down.
When a lender contributes tokens to a pool, they receive an equivalent amount of cTokens in return (i.e. cETH, cUSDT). Borrowers must collateralise their position
COMP is the governance token for the Compound protocol. Holders of the token can vote on changes to the protocol. COMP is distributed to both borrowers and lenders as an extra incentive to keep the platform’s money markets active.
Don’t invest unless you’re prepared to lose all the money you invest. This is a high‑risk investment and you should not expect to be protected if something goes wrong. Take 2 minutes to learn more: www.coinjar.com/uk/risk-summary.
Cryptoassets traded on CoinJar UK Limited are largely unregulated in the UK, and you are unable to access the Financial Service Compensation Scheme or the Financial Ombudsman Service. We use third party banking, safekeeping and payment providers, and the failure of any of these providers could also lead to a loss of your assets. We recommend you obtain financial advice before making a decision to use your credit card to purchase cryptoassets or to invest in cryptoassets. Capital Gains Tax may be payable on profits. CoinJar’s digital currency exchange services are operated in the UK by CoinJar UK Limited (company number 8905988), registered by the Financial Conduct Authority as a Cryptoasset Exchange Provider and Custodian Wallet Provider in the United Kingdom under the Money Laundering, Terrorist Financing and Transfer of Funds (Information on the Payer) Regulations 2017, as amended (Firm Reference No. 928767).
The CoinJar Prepaid Mastercard is issued by EML Money DAC pursuant to a license by Mastercard. EML Money DAC is regulated by the Central Bank of Ireland. EML Money DAC is authorised and regulated as an issuer of electronic money by the Central Bank of Ireland under registration number C95957. EML Money DAC is deemed authorised and regulated by the Financial Conduct Authority. Details of the Temporary Permissions Regime, which allows EEA-based firms to operate in the UK for a limited period while seeking full authorisation, are available on the Financial Conduct Authority’s website. Registered office: EML Payments, 2nd Floor La Vallee House, Upper Dargle Road, Bray, Co. Wicklow, Ireland. Company Registration number: 423276.
Apple Pay and Apple Watch are trademarks of Apple Inc. Google Pay is a trademark of Google LLC.