Lending platform Compound has launched its new token $COMP, following through with a governance proposal that was passed on June 10. At the time of publishing, the token is currently trading at a value of $95.23 with volumes over the past 24 hours exceeding $1.5 million.
The token’s total supply of 10 million tokens at that price gives the $COMP token a potential market cap of nearly $1 billion, which places it in the top 20 tokens by market cap.
The token is currently only available on DEX Uniswap, whose CEO Hayden Adams celebrated the liquidity milestone that resulted from the addition of the $COMP token.
The $COMP token itself is an ERC-20 token that functions in a manner similar to MakerDAO’s MKR governance token. Holders of $COMP can use the token to vote and govern the Compound protocol, allowing the token holders to steer its direction.
The Compound team formed the proposal to introduce a new token on May 27, 2020. Following a successful trial period, it was decided that they would vote on the introduction, which was approved by all and led by Polychain Capital.
Over 840 COMP has already been earned, according to Dune Analytics. Users have received 0.50 $COMP for suppliers and borrowers of ETH, DAI, USDC, USDT, BAT, REP, WBTC and ZRX.
The decentralized finance (DeFi) space is continuing its trend of growth with developments such as this. Besides the growth of stablecoins and loans, Defi platforms have been looking at bringing real-world assets to the space, which MakerDAO has done by supporting assets that tokenize trade invoices and music royalties.