Compound token (COMP) review: Why is it so popular?
Compound token was created by Compound Finance in 2020 as the primary means of trade on the platform. These tokens also give you the right to vote for change on the protocol. COMP has become quickly popular since it was launched due to Compound protocol’s growing reputation in DeFi.
Climbing to the top of DeFi rankings in just a day of trading, Compound Token (COMP) has been a big hit since it was launched on June 16, 2020. So, what’s all the fuss about?
This compound token review will be taking a closer look at what COMP is, why it was created, and where you can buy it.
Why was Compound Token (COMP) created?
Compound token (COMP) is a governance token issued when you deposit funds into Compound Finance, a lending application on the Ethereum blockchain.
COMP was created to be the protocol’s primary coin for transactions and give holders creative control over how the Compound protocol is managed.
To vote for a change in the protocol, proposals are created and community members can vote using their COMP. These proposals are recognized as addresses by Governor Alpha, Compound’s governance module. Votes can be cast when users send COMP to an address of a proposal they support. If the proposal receives more than 400,000 votes, it is queued in a timelock and is implemented after 2 days.
While having a say in the protocol’s governance seems exciting, it gets even better. Compound has indicated that users may be able to get a piece of the pie whenever fees get paid into their system. Buying COMP allows holders to hold a stake in a promising platform.
Why is Compound Token so popular?
Since the start of the DeFi movement, Maker (MKR) led the DeFi coin rankings for years unchallenged. It was, therefore, a huge shock to see MKR knocked off the top spot by COMP in only its first day of trading. Comp’s popularity is due to the following reasons:
- Community interest reward scheme: Compound offers its users extra COMP for lending and borrowing in the protocol. This gives regular customers more say when voting on the Compound network.
- Listings on top exchanges: Coinbase became the first major exchange to list the token on their platform after announcing they support the token on June 23. Currently, COMP is listed on Coinbase, OKEx, and Binance.
Compound token price
At the time of writing, COMP is valued at $159.92 and has been fluctuating between $100 and $200 since it’s launch. There is a current total supply of 10 million COMP. 42.3% of coins are reserved for distribution to users on Compound.
Where can you get Compound tokens?
You can buy COMP on an exchange through:
Where can you store Compound tokens?
COMP is an ERC20 coin that operates on the Ethereum blockchain, it can be stored on several ETH-based software and hardware wallets. Some of the best wallets that support COMP include:
- Trust Wallet
- Atomic wallet
Where to get COMP with the best rates on the market
You can automatically buy COMP with a stablecoin loan on MyConstant. A peer to peer lending platform with a difference. We automatically source the best prices from all the major exchanges for you.
When you withdraw in COMP with Crypto Credit on MyConstant you get the following benefits:
- You set the rate and terms
- Rates from as low as 6% APR
- Your collateral is held by a secure third party
- Best exchange rate guaranteed
- 24/7 customer service
Get in on one of the hottest trends in DeFi and unlock a world of investment options while you’re at it. Sign up for a free account today.
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