Delphi Daily

Compound is a decentralized lending middleman: anyone can deposit ETH, DAI, USDC or other assets and earn interest as they are lended out to users on the other end. The launch of the COMP governance token has attracted the attention of everyone in the crypto sphere. The release has also driven the market cap of the top ten DeFi protocols to $3B+.

 

There are a few interesting tidbits we should hit on

 

  • Compound successfully grew its platform and attracted suppliers/borrowers without a token initially.

  • The lending market is full of competitors; from traditional players like BlockFi to other protocols such as dYdX, Maker and Aave. Despite the idea that Compound couldn’t maintain a moat without a token or differentiation, it clearly has.

  • Currently there is $309M in assets being supplied on Compound and $81M being borrowed, being offered by 22.4k/2.5k users on each side, respectively. Over 20k users supplying assets, and people say Crypto has no users (yawn).

 

Turning to the COMP token; this token is strictly released as a governance token for now. Users can obtain the COMP token by yield farming, aka depositing assets in the protocol or borrowing. Roughly 2,880 COMP tokens are being distributed daily for the next ~4 years (based on Reservoir supply

To read this full report and get access to Delphi's research portal, become a member!

Subscribe Now