Damn, are you also tired of your traditional bank with its meager interest rates? Well, I am definitely tired of that but luckily I have some good news for you because Compound FInance could be exactly the solution we are looking for.
What Is Compound Finance?
Let`s put it as simple as possible. Everything that Compound Finance basically does is matching those who want to borrow crypto-assets and those who want to earn interest on their crypto-assets. In the case of Compound Finance, these crypto-assets are all based on Ethereum.
The supported assets on Compound Finance include Ether ($ETH), Wrapped Bitcoin ($WBTC), Dai ($DAI), Coinbase’s US Dollar Coin ($USDC), Augur Reputation ($REP), 0x Token ($ZRX), Tether ($USDT) and Basic Attention Token ($BAT). This means that you can earn interest on all your $ETH and $BAT that you have earned here on Publish0x.
You see that the Compound protocol is different from a traditional bank. It does not transfer user data to other users and the interest rates are much higher.
Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.
The Compound Token $COMP
Compound Finance`s native token is called $COMP which is an ERC-20 token running on the Ethereum blockchain. $COMP enables community governance of the Compound protocol. $COMP holders have the exclusive right to propose and vote on changes to the Compound protocol.
By the time of writing, Compound`s price is $98.16. It has a circulating supply of 3.9 Million coins and a maximum supply of 10 Million coins.
Since $COMP is a standard ERC-20 token, you can store it in any wallet with ERC-20 capabilities like Trust Wallet, Guarda Wallet, or Atomic Wallet.
How To Make Profit With Compound Finance
If you want to earn interest on your ERC-20 tokens, you need to tie your wallet with Compound Finance. Simply go to Compound Finance and click on the "App" button.
Now click on the "Connect Wallet" button, where you need to select a compatible wallet. After connecting your wallet, you can see a list of available cryptocurrencies, their balances, and interest rates on Supply and Borrow.
Choose the asset that you want to supply and send your funds to the address presented on the Compound website.
The Compound Protocol is also integrated into many different platforms like the Coinbase Wallet.
How To Earn FREE $COMP
With Coinbase Earn, you can learn how Compound Finance works by watching short educational videos. At the same time, you will be able to earn up to $59 in $COMP. Each lesson takes just a few minutes to complete.
To qualify for the Coinbase Earn Program, you need to make sure that you have a Coinbase account to the highest verification level and that you live in one of the eligible regions. You can find more details regarding the eligibility criteria here.
So you definitely need to have an account at Coinbase. If you don´t have one yet, don´t worry. You can create a new account and you will get an additional $10 in Bitcoin for free if you use my invitation link for signing up and trade $100 in cryptocurrency.
Your account that you have created for Coinbase is also your account for Coinbase Earn. Now you are able to join the waiting list of the different cryptocurrencies and wait until you receive confirmation from Coinbase Earn that you can start earning.
My Final Conclusion
Decentralized projects like Compound Finance are the ones that I believe stand to make significant gains and provide very interesting passive income opportunities over the next coming years. Yes, it`s not the only lending platform out there but, for sure, one of the big players. It is backed by world-class investors like Coinbase and BrainCapital Ventures.
So this is definitely a project to, at least, keep an eye on. 😉
At the end of my post, I also like to remind you that my intention in this post is to raise your awareness of Compound Finance and my intention is not to replace your own research. However, it really reflects my own opinion.
So I hope that I could provide you with some interesting and useful information about Compound Finance.
Thank you guys for reading, liking, following, and tipping 👍
If you like, you can also follow me on Twitter.
You may also like: TOP 3 DeFi Altcoins Powered By Polkadot 🚀