Compound Available for Borrowing, Reaches Over $15 Billion Worth
Compound, the decentralized lending protocol, touched new heights with over $15 billion worth of cryptocurrency is available for borrowing. Amid the crypto bull run, the cryptocurrency is available for borrowing on a decentralized lending protocol compound.
The Compound can now be Easily Borrowed
The total amount of crypto up for borrowing on the lending app refers to the total amount that can be borrowed as instant, non-custodial crypto loans. In non-custodial solutions or services, the provider does not maintain ownership over the assets passing through the platform. There’s over $15 billion worth of cryptocurrency available for borrowing on decentralized lending protocol Compound. The figure rose rapidly from $10 billion on 20 February to $15 billion today.
Compound dominates the DeFi market with about 19% of the value locked up in DeFi. This calculates $9.24 billion out of a total of $48.75 billion is locked up in the app, according to DeFi metrics site DeFi Pulse. Later is Maker with $7.79 billion, followed by Aave with $5.80 billion.
Decentralized Finance Trading
The DeFi protocol Compound allows traders to borrow money and earn interest on crypto. Decentralized Finance or DeFi refers to a wide network of custodial and non-custodial and financial services powered by smart contracts, the self-executing code. Smart contract audits consist of an unbiased third-party reviewing every line of code to identify bugs, vulnerabilities, and bottlenecks.
Custody is used to describe who holds (or maintains custody) of your assets.
In non-custodial solutions or services, ownership is not maintained over the assets, while Custodial solutions can be highlighted by exchanges such as Coinbase or Binance.
This means that although there is an “account balance”, the totals seen on the asset overview are merely numbers on a screen, credited by the true owner, the exchange provider.
The protocols facilitate the advantage of users to use bank-like services without any need for a bank, or any other third-party intermediary. Most of the big ones are built on the Ethereum network.
According to CoinMarketCap, COMP’s current price is $552.56. The token holders vote on the future of the network. The governance decisions for the Compound project are made by staking COMP, Compound’s token.
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