DeFi Compound: Looking For More COMP? Earn Interest And Receive Token

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Compound Finance, one of the top DeFi lending protocol, has started distributing their native governance token, COMP and ALL compound protocol users are receiving COMP token.

Their reservoir contract has 4,229,949 COMP and about ~2,880 COMP will be distributed over the next 4 years daily. Users who supply and/or borrow assets on their market protocol are eligible to receive COMP tokens.

Twitter Announcement

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Get more COMP from assets

Currently, these are the available assets and APY on compound market, and COMP token distribution depends on the market interest so that COMP token allocation for each asset will change as the market evolves. Also how much token you will receive depends on total supply/borrow amount.

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For example, if you have some BAT in your wallet and decide to supply into the BAT market protocol, you will earn 22.03% interest for supplying BAT and you are eligible to receive COMP token.

If you also have some USDT and decide to supply that to the protocol, you will earn 8.16% interest on USDT supply and eligible to receive COMP.

Which asset will give you more COMP if you supply same amount to the market?

It's BAT, because BAT interest is higher than USDT. Right now the best interest rate is 30.70% on BAT borrow so that you will receive more COMP token for borrowing BAT.

I don't like to borrow anything, so I have supplied BAT and USDT and see how is going to work.

This market changes all the time but XRZ and WBTC are also interesting and good options right now.

How to supply asset

Supplying assets on compound is very easy.

Just go to app.compound.finance and connect your wallet.

Click on an asset that you like to supply and "ENABLE". Click "MAX" to supply all available fund or type in the amount you like to supply.

Then just click "SUPPLY". That is all. (it will cost small gas fees for enabling and supplying)

What's next

Click on "Vote" or go to vote page to see what happened.

You can see how much COMP token you have earned by supplying / borrowing assets.

Once you earn 0.001 COMP, token will be transferred to your wallet automatically or you can collect it manually if you prefer.

Approx. 2880 COMP will be distributed everyday from their reservoir directory to your wallet so that you will earn COMP token and the interest on your assets.

But what is COMP why COMP now

I am more interested in the "side effects" and not good at "what is" but basically it is another ERC-20 token that is native to compound protocol... that is on fire 🔥🔥🔥 since the token distribution. Almost 300% increase in a few days.

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And Coinbase is going to list the asset next week so there is a good chance that the token will take off... at least for a while.

I am no analyst so I am not saying this is going to the moon or anything but I think it is interesting that you can earn more than one token for doing something.

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Posted with Esteem

• https://compound.substack.com/p/comp-distribution-key-delegates-new
• https://medium.com/compound-finance/expanding-compound-governance-ce13fcd4fe36
• https://defirate.com/comp-distribution/
• https://blog.coinbase.com/compound-comp-is-launching-on-coinbase-pro-4665a609dd80