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How To Earn Compound COMP Tokens?

What Is Compound Finance?

Compound Finance is a project that algorithmically implements money markets. It allows generating markets where it is possible to lend assets and borrow them (basing these loans on collateral) so that the interest rate is calculated block by block according to the Supply and Demand in an algorithmic way.

What Are The Distinguishing Features Of Compound?

  • The Compound protocol is not similar to a traditional bank and does not transfer user data to other users.
    Instead, it provides market liquidity for tokens and users can borrow from this market. Demand and supply determine the interest rate in each market.
  • When users provide tokens for a complex protocol, it uses cToken to represent them. cToken is the main token in the protocol, and all negotiation, transmission, and programming processes are based on it.
  • The automated nature of the Compound protocol allows you to calculate the interest rate on holdings. Interest rates are updated with each production of the Ethereum block lasting about 15 seconds.

Step-By-Step Guide On Earning COMP Token

  1. So, we’ll start, perhaps, with the most fundamental part — buying ERC-20 tokens. In our case, it will be ETH. In order for us to get ETH on your wallet, you need to open your Guarda Wallet (on any digital device) and go to the Buy tab, where you specify the amount you need in your currency and pay with your VISA or Mastercard.
  2. Once you have purchased ERC-20 tokens, you need to tie your wallet with Compound Finance. In order to do this, you need to go to Compound Finance website, and on the main screen click on the App button.
compound.finance

How Do I Get Compound, After All?

COMP is earned through interaction with Compound Tokens. COMP is accrued automatically as assets are provided or borrowed via the protocol. To find out how much COMP you have collected (or earned), just go to the voting control panel. Here you can Collect COMP for voting.

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Guarda Team

Guarda Team

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We write about essential updates and news around Guarda Wallet Ecosystem