Earn interest with Compound
“Compound is a protocol running on Ethereum that lets individuals, developers, and applications earn interest on their crypto without relying on third parties.” – Lesson #1 Video Earn on CoinBase
Just having crypto does not collect interest, this is why Compound was created, You earn interest on crypto assets by supplying them to the protocol other users can then borrow and pay interest on the borrowed assets. All of the suppliers and borrowers who use compounds combine to form a series of blockchain-based interest rate markets.
When you add assets to Compound it gets added to a global liquidity pool, which other users can borrow from by providing collateral up front. This idea is already modeled in our current economic infrastructure. So this seems like a good future look at where we are heading in the next decade era.
Compound allows its users to engage in a decentralized money market for crypto assets. Where we as buyers/borrows/sellers/traders can supply our assets to -> compound and start earning interest on longer term stored crypto assets. I love this as I would like to store some Crypto longer term and have the market use it to buy and do as they will with it. At the same time earning interest on my investment. A lot like I have money in a Certificate of Deposit at the local Credit Union but for other CryptoNites like my newly added self.
Cool feature is Compound has no FIXED terms meaning you can supply and borrow when you please whether for 30 mins or 30 years.
Once Compound receives an Asset interest is automatically calculated and distributed with each NEW Ethereum Block. On average about every 15 seconds! Meaning you can start earning interest on your idle crypto assets in a trustless economy that doesn’t rely on a central authority to manually calculate and distribute supply interest. I find myself asking where is my risk though? If ETH/ETC or the entire Ethereum block would need to crash? As volatile as it already is right?
Compound Interest rate Markets work globally and can integrate with any service and/or application that hold crypto assets. Compound provides infrastructure for developers to launch future proof decentralized financial services and applications that can pass down benefits to their users, enabling users to simultaneously begin earning interest.
The Compound Protocol is a collection of Ethereum and contracts that are decentralized and completely autonomous.
Stop relying on and paying fees to third parties. To learn more about compound visit compound.finance
Brings privata data to block chain with End-to-End-Encryption E2EE 🙂 I earned $1USD in NU on https://www.Coinbase.com/earn/nucypher
A Leveraging threshold cryptography system, that enables features including data access control, threshold signing and verification. NU is an Ethereum token that must be staked to become a node. .