I just realized something quite interesting about DeFi – there are still many people who don’t fully understand how to earn interest from their cryptocurrencies without depositing them into an exchange. Compound is the solution to this problem.



What is Compound? Simply put, it is a protocol that allows you to lend crypto and earn interest from it. It operates as an automated intermediary on Ethereum, connecting lenders with borrowers, without anyone needing approval.

The cool part is you don’t have to find borrowers or negotiate interest rates. Everything is determined by an algorithm based on supply and demand. You deposit crypto into liquidity pools, and boom – you start earning interest. The interest rates are updated continuously, approximately every 15 seconds on Ethereum.

The COMP token is the key to participating in the protocol’s governance. If you hold COMP, you have voting rights to decide the platform’s direction. Additionally, those who lend or borrow on Compound also receive COMP rewards.

Regarding numbers, COMP has a total supply of 10 million tokens. Currently, about 8.86 million tokens are in circulation. The distribution is quite reasonable: 42.3% for liquidity mining, 24% for stakeholders, 22.5% for the founding team, 7.75% for the community, and the remaining for future members.

Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes. Both previously worked at Postmates but decided to focus on DeFi. Leshner is now the CEO, Hayes is the CTO, and they are still developing this protocol.

The value of COMP is currently $22.80 (as of May 2026). This price reflects market interest in the protocol.

Why is Compound important? Because it is one of the first DeFi platforms to demonstrate that you can lend and borrow in a fully decentralized manner, without banks or any intermediaries. This opens up a new approach to finance.

If you’re looking to leverage your crypto assets, Compound is a worthwhile option to consider. But remember, like any DeFi platform, there are risks involved – do your research carefully before investing.
COMP-2.12%
ETH-0.14%
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