Compound is a San Francisco-based company with an application enabling people holding assets in Ethereum to gain interest on those assets, when they would normally sit in a digital wallet. It also allows for the borrowing of tokens, much like financial aid. Cryptocurrencies that are supported on Compound are Ethereum, 0x, Augur, Basic Attention Token, Dai, USDC, and wrapped Bitcoin.
Users of Compound, both borrowers and lenders, interact with the protocol so that they can earn or pay a floating interest rate. This allows for them to borrow and lend without negotiating terms such as maturity or interest rate. The interest rates depend upon the supply and demand of the specific cryptocurrency that is being borrowed or lended. These rates are available for viewing by the users upon visiting the interface through a Web3 browser. Compound also has a transparency dashboard so that users can see how much the company is earning with each transaction.
Compound raises $8.2 million
In a seed round, the company raises more than $8 million dollars from investors such as Polychain and Bain Capital Ventures.
Compound raises a $8,199,999 seed round from Abstract Ventures, Compound Ventures, Bain Capital Ventures, Danhua Capital, Coinbase, Transmedia Capital, Andreessen Horowitz and Polychain Capital.
Compound was founded by Geoffrey Hayes and Robert Leshner.
Jeff Morris Jr.
Coinbase's first investment, Compound, earns you interest on crypto
Compound: The Money Market Protocol