What is Compound?
Compound is a decentralized finance (DeFi) project that lets people earn interest on their crypto assets.
In contrast to traditional bank savings accounts and loans, Compound is entirely autonomous and open source. There are no middle-men. No bankers.
How can I start?
- Open Argent
- Tap 'Invest'
- Tap 'Explore Savings' and then 'Compound'
- Choose an asset to start earning interest on
- Enter amount (or, if you don't have the assets already in your wallet, buy them)
- Tap Save
How does it work?
Compound uses algorithmically derived interest rates, based on the supply and demand for an asset.
Suppliers (and borrowers) of the asset interact directly with the protocol, earning (and paying) a variable interest rate.
People using Compound do not have to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty.
If you'd like to get into the nitty-gritty detail, you can read the Compound whitepaper.
When do I get my interest?
You earn interest in real time (or, to be precise, every 8-10 seconds, which is every Ethereum block). This interest is automatically added to your wallet.
Is there a minimum / fixed term on my savings?
There is no minimum or maximum term. You can withdraw your funds at any time.
Argent users supply assets to Compound at their own risk. As Compound notes, "Compound v2 was audited by Trail of Bits, and the protocol was formally verified in partnership with Certora. The Compound protocol depends on new technology that may contain undiscovered vulnerabilities".
Find out more about DeFi risks here.