Compound COMP
Lending markets and governance.
Compound provides lending markets through smart contracts. COMP is its governance token.
What is Compound?
Compound markets let users supply assets or borrow against collateral under each market’s rules. COMP holders and delegates govern protocol changes. Owning COMP is separate from supplying assets to a lending market.
Borrowing positions can be liquidated, and smart-contract failures can cause losses. Supplying assets is not a guaranteed-return bank deposit.
Why people pay attention
Lending markets
Smart contracts manage supplied assets and borrowing.
Collateral rules
Borrowing depends on market limits and collateral value.
Governance
COMP holders and delegates participate in protocol decisions.
Origins & development
Compound’s COMP governance framework was documented and audited in 2020. Later protocol versions retained community governance while changing market designs.
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Related stories and learning resources will be added after editorial review.
Sources & further reading
Draft — editorial review pending