What is Compound?
Compound is an open-source protocol for algorithmic, efficient money markets on the Ethereum blockchain.
It enables users to earn interest or borrow assets against collateral, and provides a platform for developers to build financial applications and services. The Compound protocol is designed to facilitate the creation of decentralized money markets, where users can lend or borrow assets without having to trust a third party. The protocol allows users to deposit assets into a pool of liquidity, which is then used to generate interest for lenders and borrowing opportunities for borrowers.
This pool of liquidity is managed by an algorithm that automatically adjusts the supply and demand of each asset in order to maintain an optimal balance between lenders and borrowers. The Compound protocol also provides developers with access to a range of financial services, such as automated market making, margin trading, derivatives trading, and more. By leveraging the power of smart contracts on the Ethereum blockchain, developers can create powerful financial applications that are secure, transparent, and censorship-resistant.
