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 initiaLlly.
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, b