Compound(COMP)

Overview

Compound (COMP) is the governance token of Compound Finance, a decentralized lending protocol built on Ethereum. COMP holders can vote on proposals concerning how the protocol operates, and they may delegate their voting rights to any address they choose: their own wallet, another user, an application, or a DeFi expert. Because delegation is open, anyone can participate in Compound governance by receiving delegated votes without owning COMP.

Any address with at least 1% of COMP delegated to it can submit a governance proposal. Proposals range from simple to complex sets of actions, such as adding support for a new asset, changing an asset's collateral factor, adjusting a market's interest rate model, or modifying other protocol parameters that the administrator can change. Approved proposals are executed on-chain through the protocol's smart contracts.