Compound (COMP): Price, Market Data, and DeFi Protocol Overview

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Compound (COMP) is a leading decentralized finance (DeFi) protocol built on the Ethereum blockchain, enabling users to lend and borrow digital assets through an algorithmic, autonomous system. With its innovative governance model and yield-generating mechanisms, COMP has become a cornerstone in the evolving world of open financial applications.

As of the latest update, Compound (COMP) is trading at $41.70**, with a 24-hour trading volume of **$25,908,669. The price has declined by -6.52% over the past day, reflecting broader market volatility. The circulating supply stands at 9.39 million COMP, out of a maximum and total supply of 10 million, resulting in a 93.91% circulation rate. This gives COMP a current market capitalization of approximately $391.6 million.

How Does Compound Work?

At its core, Compound operates as a transparent, non-custodial liquidity market protocol. It allows users to supply crypto assets into pools and earn interest in real-time—or borrow against their holdings by providing collateral.

The ecosystem revolves around four key participants:

Currently, Compound supports several major cryptocurrencies including DAI, USDC, ETH, WBTC, UNI, and COMP itself, each residing in its own liquidity pool. When users lend assets, they receive cTokens (e.g., cDAI for DAI deposits), which accrue interest over time based on supply and demand dynamics within that pool.

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Key Features of the Compound Protocol

Dynamic Interest Rates

Interest rates on Compound are not fixed. Instead, they adjust algorithmically in real time based on the utilization ratio—the proportion of supplied assets currently borrowed. High demand increases borrowing rates, incentivizing more supply; low demand reduces them, encouraging further borrowing.

Collateral Factors and Borrowing Power

Each asset has a collateral factor, typically below 100%, which determines how much a user can borrow relative to their deposited value. For example, if ETH has a collateral factor of 75%, a user must deposit $1,000 worth of ETH to borrow up to $750 in another asset.

If the value of the collateral drops or the debt rises—pushing the loan-to-value ratio too close to 1—the position becomes eligible for liquidation. Liquidators can repay part of the loan and claim the collateral at a discount (usually 3–5%), ensuring protocol stability.

Governance with COMP Tokens

Holders of COMP tokens have full governance rights over the protocol. They can propose and vote on changes such as adding new markets, adjusting risk parameters, or modifying interest rate models. This decentralized decision-making empowers the community to shape Compound’s evolution.

COMP Tokenomics: Distribution and Incentives

The COMP token serves as the governance token for the Compound protocol. Its distribution was designed to promote long-term decentralization and user participation.

Token Allocation

New COMP tokens are minted per Ethereum block—initially 0.5 COMP per block—with emissions decreasing annually until fully distributed.

Liquidity Mining Incentives

To bootstrap adoption, Compound introduced lending and borrowing incentives. Half of the user-distributed tokens go to lenders; the other half to borrowers. Rewards are calculated based on each user’s share of activity within individual markets.

This dual incentive model encourages both capital supply and usage—critical for a healthy lending ecosystem.

Where to Access Compound Data and Interact with the Protocol

For those interested in monitoring or engaging with Compound directly:

Blockchain Explorers

You can track COMP transactions across multiple chains using these block explorers:

Official Channels

Stay updated via:

Frequently Asked Questions (FAQ)

Q: What is the all-time high price of Compound (COMP)?
A: COMP reached its peak at $910.46 on May 12, 2021, during the height of the DeFi boom.

Q: Is there a difference between circulating supply and total supply?
A: No—Compound has a fixed maximum supply of 10 million COMP, with nearly all already in circulation (93.91%).

Q: Can I stake COMP tokens?
A: While you cannot "stake" COMP in the traditional proof-of-stake sense, holding COMP allows you to participate in governance and potentially earn rewards through voting incentives.

Q: How do I buy Compound (COMP)?
A: You can purchase COMP on major exchanges like Coinbase, Gemini, MEXC, and OKX after completing identity verification.

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Q: Can I short sell Compound (COMP)?
A: Yes—via margin trading platforms offering perpetual contracts or futures. Exchanges like Binance, KuCoin, and OKX support shorting COMP using USDT or coin-backed positions.

Q: Is Compound safe to use?
A: The protocol is audited and battle-tested since 2019, but smart contract risks and market volatility remain. Always assess personal risk tolerance before interacting.

Is Compound (COMP) a Good Long-Term Investment?

Investing in COMP involves evaluating both technological relevance and macroeconomic trends. As one of the earliest DeFi protocols, Compound helped pioneer algorithmic lending markets. However, increased competition from Aave, MakerDAO, and newer cross-chain protocols means ongoing innovation is essential.

Long-term viability depends on:

While COMP offers exposure to DeFi growth, it carries significant volatility and should only form part of a diversified portfolio.

👉 Compare real-time COMP price trends and trading volumes across top exchanges

Core Keywords

Compound (COMP), DeFi lending protocol, crypto lending platform, governance token, cToken, liquidity mining, blockchain interest rates, decentralized finance

By integrating advanced economic design with community-driven governance, Compound remains a foundational pillar in decentralized finance. Whether you're lending, borrowing, or shaping policy—COMP empowers permissionless financial participation in the digital economy.