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TürkçeCompound Information
Compound is a decentralized finance (DeFi) protocol that enables users to lend and borrow cryptocurrencies in a secure and efficient manner. By utilizing smart contracts on the Ethereum blockchain, Compound allows for interest rates to be algorithmically adjusted based on supply and demand dynamics. This innovative approach provides users with the flexibility to earn interest or access liquidity without the need for traditional banking intermediaries.
Understanding Compound: A Comprehensive Overview
Compound (COMP) is a prominent player in the decentralized finance (DeFi) space, offering a protocol that allows users to lend and borrow cryptocurrencies. Founded by Robert Leshner and Geoffrey Hayes in 2018, Compound has established itself as a critical infrastructure in the DeFi ecosystem, operating on the Ethereum blockchain.
The Mechanism Behind Compound
The Compound protocol operates by creating money markets with algorithmically set interest rates. Users can supply assets to the protocol and earn interest, or borrow against their crypto collateral. These transactions are facilitated through the use of smart contracts, which eliminate the need for intermediaries and provide users with control over their funds.
Advantages of Using Compound
One of the primary advantages of Compound is its decentralized nature, which enhances security and transparency in financial transactions. Additionally, the platform offers interest rates that adjust continuously based on supply and demand, ensuring competitive and fair returns.
Compound's user interface is intuitive and accessible, allowing even those new to DeFi to engage with the protocol effectively. Moreover, COMP token holders have governance rights, enabling them to vote on proposals and changes to the protocol.
Challenges and Drawbacks
Despite its advantages, Compound faces several challenges. The volatility of cryptocurrencies can lead to sudden changes in collateral value, posing risks for borrowers during sharp market downturns. Additionally, like many DeFi platforms, Compound is susceptible to smart contract vulnerabilities that can be exploited if not addressed adequately.
Another downside is the rising competition within the DeFi space, with new protocols offering similar services, which can potentially siphon away users from Compound if it does not continue to innovate and improve.
Historical Performance and Market Presence
Compound has experienced significant fluctuations in its market performance. Its all-time high occurred on May 12, 2021, when its price soared to $910.54. However, like many cryptocurrencies, Compound's price has seen a decline from its peak, experiencing a drop of over 95% since then. The all-time low was recorded on June 10, 2023, at $25.74, showcasing the inherent volatility of the crypto market.
As of the latest data, the price hovers around $44, demonstrating a recovery from its lowest point but still far from its historical peak. The market cap stands at approximately $386 million, with a circulating supply nearing 8.7 million COMP tokens.
Future Outlook for Compound
Looking ahead, Compound's prospects seem promising if it continues to capitalize on the growing DeFi sector. The increasing acceptance of decentralized financial products and the development of Layer 2 solutions on Ethereum could significantly bolster Compound's utility and adoption.
However, its success will depend on maintaining security, offering competitive rates, and possibly expanding its offerings to include more diverse assets and integrations. The involvement and active participation of the community through governance will also play a crucial role in its ongoing development and sustainability.
In conclusion, while there are notable challenges, Compound remains a foundational platform in the DeFi landscape, providing essential services to users and continuing to innovate in the crypto space. Its past performance and future potential make it a project worth watching for investors and crypto enthusiasts alike.
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from price
$64
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General Information |
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Title
Compound
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Symbol
comp
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Whitepaper
-
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Website
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Community
-
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Last Updated
2025-02-01 23:56
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Price Data |
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Current Price $
64.14
$
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High 24h
70.31
$
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Low 24h
63.8
$
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Price Change 24h
-5.6174617439502
$
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Price Change % 24h
-8.05321
%
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Market Data |
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Market Cap
568782015
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Total Volume
50931214
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Market Cap Change 24h
-49455143.918114
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Market Cap Change % 24h
-7.99938
%
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Return on Investment (ROI)
-
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Supply and Availability |
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Circulating Supply
8869654.822164
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Total Supply
10000000
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Max Supply
10000000
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Historical Data |
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All Time High (ATH)
910.54
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ATH Change %
-92.94284
%
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ATH Date
2021-05-12 02:29
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All Time Low (ATL)
25.74
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ATL Change %
149.64128
%
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ATL Date
2023-06-10 16:15
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