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  • Compound (COMP)

    10/19/2025 17:00 UTC

    $36.70

    % Today
    1.47%

    Price Chart

    24H: +7.03% |
    7D: +6.15% |
    30D: -17.88%
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    Compound News

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    Overview

    Compound is a decentralized lending and borrowing protocol that runs on Ethereum and other EVM networks. Often called the “Compound blockchain” by newcomers, it’s actually a set of smart contracts that anyone can use to supply crypto assets, earn interest, or borrow against their holdings. The COMP token is the governance token for the protocol. Holders can propose and vote on upgrades, risk parameters, and incentive programs. Because COMP is widely listed and transferable, many users also follow the COMP price on their preferred exchange or portfolio app, even though governance — not payments — is its core role. Compound’s latest architecture, commonly referred to as Compound III or “Comet,” focuses on simple, efficient borrowing markets with stronger risk controls across multiple chains. (docs.compound.finance)

    What makes Compound different

    • Algorithmic interest rates change automatically with supply and demand for each market.
    • On Compound III, each market has a single base asset to borrow (for example, USDC or WETH), and users can supply multiple tokens as collateral. This isolates risk between markets and simplifies liquidations. (docs.compound.finance)

    Price, Market Position, and Liquidity

    As of 10/19/2025 17:00 UTC, Compound (COMP) trades at $36.70 with a +7.03% move over the last 24 hours.
    The market capitalization stands at $347M, placing it at rank #224 by market value.
    Daily trading volume is $36M. Compound (COMP) has moved +6.15% over the past seven days and -17.88% across the last 30 days.

    History & Team

    Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, two University of Pennsylvania alumni who previously built software products together and worked at Postmates before turning to decentralized finance. The protocol’s first mainnet release went live in September 2018, with a major v2 upgrade in 2019 and the launch of the COMP token and community governance in 2020. Compound III (Comet) began rolling out in August 2022, followed by deployments on Polygon, Arbitrum, and Base in 2023. (messari.io)

    Backing for the company that incubated the protocol, Compound Labs, came from well-known venture firms. A 2018 seed round raised $8.2 million from Andreessen Horowitz (a16z), Bain Capital Ventures, Polychain Capital, and others, with Coinbase participating. Later rounds further expanded resources for development. (medium.com)

    Key milestones

    • 2018: Protocol launch on Ethereum mainnet.
    • 2019: v2 introduced separate markets with interest-bearing cTokens.
    • 2020: COMP token deployed; governance transferred to the community.
    • 2022–2023: Compound III launched on Ethereum and expanded to Polygon, Arbitrum, and Base. (messari.io)

    Technology & How It Works

    Compound is built from audited, open-source smart contracts. Users interact directly with these contracts or through interfaces built by wallets and apps.

    Compound v2 and cTokens

    Compound v2 popularized “cTokens,” ERC‑20 tokens users receive when they supply assets. cTokens automatically accrue interest and can be used in other DeFi apps as collateral or building blocks. While v2 is still referenced across DeFi, governance is guiding users toward Compound III for new activity due to its simpler, safer model. (messari.io)

    Compound III (Comet) design

    Comet simplifies markets around a single asset to borrow per deployment (the “base asset,” such as USDC or WETH). Users can supply multiple tokens as collateral to increase borrowing capacity. Collateral earns no interest; only the base asset supply side earns interest. Markets enforce supply caps, collateral factors, and a minimum borrow size to keep risk in check. Because each market is isolated, a problem with one collateral asset does not spill over to other base-asset markets. (docs.compound.finance)

    Interest accrues continuously through global supply and borrow indices. When users supply or withdraw, balances are recomputed using these indices, keeping accounting precise and gas-efficient for on-chain execution. (docs.compound.finance)

    Oracles and pricing

    Compound uses an “Open Price Feed” that relies on Chainlink price feeds, with a Uniswap time-weighted average price (TWAP) as an anchor/failover check. This approach verifies reported prices against decentralized on-chain liquidity to reduce the chance of manipulation. (stage.compound.finance)

    Governance mechanics

    Governance is handled by the COMP token with a battle-tested Governor Bravo module and a time delay (Timelock) before changes go live. Today, creating a proposal requires at least 25,000 COMP delegated to the proposer, votes run for roughly three days, quorum is defined in the contracts, and successful proposals queue for a two-day Timelock before execution. These parameters can evolve through governance. (stage.compound.finance)

    Tokenomics & Utility

    The COMP token gives holders a say in the protocol’s future. Compound tokenomics were designed to decentralize control and align incentives with active users.

    Supply and allocation

    COMP has a fixed maximum supply of 10,000,000 tokens. The initial allocation included tokens for users, for founders and the team (subject to multi‑year vesting), and for shareholders. A portion was set aside for community governance initiatives. Over multiple years, a large user allocation was streamed to the protocol and distributed to suppliers and borrowers based on activity. (comp.xyz)

    A defining feature of early Compound tokenomics was the “Reservoir” contract that released COMP to markets each Ethereum block, with distribution split 50/50 between suppliers and borrowers and allocated across markets in proportion to interest accrued. This user-first distribution helped jumpstart governance participation and made the protocol a core building block in DeFi. (blog.openzeppelin.com)

    What COMP does

    • Governance: propose and vote on upgrades, risk parameters (like collateral factors and caps), and market deployments.
    • Incentives: historically, COMP rewards have been used to seed new markets and migrations as decided by governance.
    • Signaling: because governance is open, COMP holders can coordinate to evolve incentives or add utility in the future. At launch, COMP did not capture protocol fees; governance retains the power to revisit token economics over time. (dev.coindesk.com)
    View the detailed Tokenomics Page to see the Compound (COMP) token unlock schedule — including detailed allocations, dates, and market impact analysis.

    Ecosystem & Use Cases

    Compound sits at the center of “money legos” in decentralized finance. Its markets connect to wallets, dashboards, treasuries, and developer tools across chains.

    Lending and borrowing

    Users supply supported tokens to earn interest or post them as collateral to borrow the market’s base asset. The protocol adjusts interest rates algorithmically so markets clear without order books or centralized intermediaries. On Compound III, markets on Ethereum, Polygon, Arbitrum, and Base bring these features to lower-cost networks. (messari.io)

    Builders and integrations

    Developers integrate Compound in a few ways:

    • Smart contracts that programmatically supply, borrow, or manage treasury positions.
    • Wallets and interfaces that make it easy to monitor health factors and positions.
    • Cross‑protocol strategies that use collateral or interest-bearing positions in other DeFi apps.

    Because Compound assets and interfaces are EVM‑standard, they play well with the wider DeFi stack — from yield optimizers to DAO treasuries and on-chain funds.

    Compound DeFi, NFTs, gaming

    While Compound isn’t an NFT or gaming protocol, its liquidity is often part of broader DeFi, NFTs, and gaming flows. For example, game studios and NFT projects can use Compound’s base‑asset markets to access working capital or to park treasury assets in liquid, transparent markets, while keeping governance in their own tokens. Composable design means positions can be tokenized and referenced by other apps, extending utility across Web3.

    Advantages & Challenges

    Advantages

    • Proven architecture and audits from early DeFi days, with a strong track record as a lending primitive.
    • Clear governance with COMP token voting, Governor Bravo, and a Timelock that adds transparency to changes. (stage.compound.finance)
    • Compound III’s isolated markets simplify risk, make liquidation logic cleaner, and reduce cross‑market contagion. (docs.compound.finance)
    • Deep ecosystem support: standard ERC‑20 integrations, developer libraries, and multi‑chain deployments. (docs.compound.finance)

    Challenges

    • On Ethereum mainnet, gas costs can be higher than on L2s, so many users prefer Polygon, Arbitrum, or Base deployments for routine transactions. (messari.io)
    • Supported assets are curated for risk; this can feel more limited than some platforms that list many long‑tail tokens.
    • Governance participation requires delegation and, for proposing, a sizable threshold of COMP, which concentrates proposal power among large delegates by design. (stage.compound.finance)

    Where to Buy & Wallets

    If you’re researching where to buy COMP, you’ll find it on many major centralized exchanges and on decentralized exchanges on Ethereum. On DEXs, you typically swap ETH or a stablecoin for COMP using a Web3 wallet. On centralized platforms, you can place a market or limit order and then withdraw to self‑custody if you choose. Always verify you’re interacting with the correct COMP token contract on the intended network.

    For storage, COMP is an ERC‑20 token compatible with popular wallets:

    • Browser wallets like MetaMask for everyday governance and DEX use.
    • Mobile wallets that support Ethereum and EVM chains.
    • Hardware wallets such as Ledger or Trezor for long‑term cold storage.

    Because Compound III has deployments on multiple chains, some users bridge funds to an L2, then interact with the Comet market for that network to reduce fees. Your wallet must be set to the same chain as the market you’re using.

    Regulatory & Compliance

    Compound is open-source software governed by token holders. The protocol itself does not onboard customers or custody funds; users interact with smart contracts directly. In practice, most compliance obligations in the U.S. and other jurisdictions tend to apply to centralized on‑ramps, custodians, and front‑end operators rather than to immutable on‑chain code. Compound’s governance, parameters, and deployments are public, with upgrades delayed by a Timelock to increase transparency around changes. The broader regulatory conversation about decentralized finance remains active, and frameworks can vary by country. (stage.compound.finance)

    Halal/Shariah considerations

    Readers often ask, “Is Compound halal?” From an Islamic finance perspective, many scholars answer no. That’s because Compound’s core model involves lending and borrowing with interest‑like returns, which resembles riba. As a result, COMP shariah compliant status is generally considered negative, even though COMP is a governance token. If religious compliance is a priority, individuals typically consult a qualified scholar for personal guidance.

    “Compound regulatory status” at a glance

    • Compound is a decentralized protocol; the COMP token is used for governance.
    • Exchanges that list COMP handle their own KYC/AML obligations and may have geo‑specific access.
    • Governance discussions and parameter changes are transparent and executed via on‑chain votes with a two‑day Timelock. (stage.compound.finance)

    Future Outlook

    Compound’s roadmap is driven by its community. Several trends shape where it goes next:

    • Multi‑chain growth: Compound III deployments across EVM networks lower costs and open the protocol to more users and developers. As new chains mature, the DAO can choose additional deployments and tune parameters market by market. (messari.io)
    • Risk tooling: Expect continued refinement of collateral factors, supply caps, and oracles. The Open Price Feed approach — Chainlink prices anchored against Uniswap TWAPs — is designed to evolve with market structure and liquidity. (stage.compound.finance)
    • Composability: As more Web3 apps emerge, especially in DeFi, NFTs, and gaming, simple base‑asset markets can serve as a reliable back end for treasuries, creators, and DAOs to access transparent, programmable liquidity.
    • Governance utility: “Compound tokenomics” can adapt through proposals. While COMP’s core role is governance, delegates can experiment with incentives around new markets or deployments as the ecosystem changes. (stage.compound.finance)

    Summary

    Compound is one of the original DeFi lending protocols, with a focus on clean, modular design and community‑led governance. The COMP token gives holders control over upgrades and risk settings, and the Comet architecture makes markets simpler and more isolated than earlier versions. Whether you are a developer building on EVM chains, a DAO managing a treasury, or a user comparing platforms, Compound offers a transparent way to access on‑chain credit markets. If you’re exploring where to buy COMP, many exchanges and DEXs list it; and you can track COMP price on your preferred platform while using a compatible wallet for governance. For those seeking religious guidance, the common view is that Compound halal criteria are not met due to interest‑based lending. Overall, Compound remains a foundational piece of the Ethereum‑centric DeFi stack, and its community continues to guide its evolution across networks. (docs.compound.finance)

    Last Updated: 10/5/2025 17:33 UTC

    Description

    #224

    Compound is a DeFi protocol that allows users to lend and borrow crypto assets on the Ethereum blockchain. It uses smart contracts to create liquidity pools and to distribute interest and COMP tokens to lenders and borrowers.

    Sector: Lending
    Blockchain: Ethereum
    2020
    Bluechip

    Market Data

    Marketcap Rank (#)
    224
    Price ($)
    36.70 +6.15% (7d)
    24h Volume ($)
    36M -68.83% (7d)
    Marketcap ($)
    347M
    Fully Diluted Value ($)
    367M
    Circulating Supply
    97% HIGH
    2.6M 1.7K/13K
    1.6M 78K/143K
    617K 29K/68K
    469K 46K/68K
    460K 98K/137K
    443K 54K/73K
    316K 69K/95K
    256K 13K/28K
    216K 19K/36K
    94K 44K/142K
    47K 5.2K/38K
    46K 27K/27K
    23K 6.5K/12K
    15K 4.4K/4.4K
    15K 1K/17K
    14K 28K/75K
    11K 3.3K/3.3K
    11K 278/277
    4.7K 3.9K/9.4K
    869 5.7K/6K
    828 268/267
    821 336/335
    678 59/59

    Exchange Relationships

    COMPACT
    FULL
    Jun 25, 2020
    COINBASE Sponsorship
    100%
    How certain we are about this information
    Exchange Coinbase
    Compound participated in a Coinbase Earn campaign where users earned COMP by completing lessons; Coinbase noted it receives a servicing fee from the issuer.
    May 16, 2018
    COINBASE Investment
    100%
    How certain we are about this information
    Venture Arm Coinbase Ventures
    Coinbase Ventures invested in Compound Labs’ $8.2M seed round.

    Important Milestones

    Aug 26, 2022
    Compound III (Comet) live
    Upgrade
    Next-generation architecture launched on Ethereum with isolated markets, single borrowable asset, Chainlink oracles, enhanced liquidation engine, and configurator-controlled governance parameters for safer, cheaper borrowing.
    Sep 29, 2021
    Proposal 62 bug
    Security Incident
    After Proposal 62 executed, a comptroller bug misallocated up to 280,000 COMP (~$80M) to claimants. No supplied or borrowed funds were at risk; fixes required governance.
    May 12, 2021
    All-time high price
    All-Time High
    COMP reached $910.54, its highest recorded price per CoinGecko, amid the May 2021 DeFi bull market before retracing later that year.
    Jun 23, 2020
    Coinbase Pro listing
    Listing
    Trading for COMP-USD and COMP-BTC began on Coinbase Pro after transfers opened June 22, marking a rapid listing shortly after token launch.
    Jun 15, 2020
    COMP distribution begins
    Governance
    Governance-approved Proposal 007 started continuous COMP rewards to users across eight markets, split between suppliers and borrowers proportional to market interest accrual.
    Nov 14, 2019
    Series A $25M
    Funding
    Compound Labs closed a $25 million Series A led by Andreessen Horowitz, with Polychain, Paradigm, and Bain Capital Ventures participating to accelerate protocol growth.
    May 23, 2019
    Compound v2 launched
    Upgrade
    v2 went live on Ethereum, introducing transferrable cTokens and granular risk parameters; initial supported assets included ETH, ZRX, REP, BAT, DAI, and USDC.
    Sep 27, 2018
    Protocol mainnet launch
    Launch
    Compound’s first money markets deployed to Ethereum after audits by Trail of Bits and Certora, enabling algorithmic interest rates for lending and borrowing without counterparties.