Compound labs being an open-source software development company are building tools, products, and services for the decentralized finance (DeFi) ecosystem. They are doing this because they feel that legacy financial systems are slow, inefficient, and also constrained by intermediaries. They claim that they are on a mission to change that.
For clarity, Compound (COMP) is an ERC-20 asset which empowers the community governance of the Compound protocol; COMP token-holders and their delegates debate, propose, and vote on all changes to the protocol.
By placing COMP directly into the hands of users and applications, an increasingly large ecosystem will be able to upgrade the protocol, and will be incentivized to collectively steward the protocol into the future with good governance.
Everyday nearly 2,312 COMP gets distributed to users of the protocol. The distribution is allocated to each market like for ETH, USDC, DAI and it is set through the governance process by the COMP token-holders.
For each market, half of the distribution is earned by suppliers, and the other half by borrowers.
Anyone who makes use of Compound for supplying or borrowing assets are going to automatically begin accruing COMP. By looking in to the Market Distribution table users will be able to get an idea of how much COMP is distributed by market and activity. Also, users will be able to track and claim their COMP Distribution from the Dashboard.
For instance, someone who is building an application and they are looking to design for the distribution. Then, COMP is only claimable by addresses which directly interacts with the protocol (msg.sender), and this address is capable of calling the claim function.
Those developers who are building smart contract wrappers will be able to design for this interaction, else COMP will be unclaimed and inaccessible. Those who have questions to ask will be able to get their concerns by getting in touch with the community on Discord.
COMP markets is happening across Ether, Dai, USD Coin, Wrapped BTC, Wrapped BTC (Legacy), Tether (USDT), Uniswap (UNI), Compound Governance Token (COMP), Ox (ZRX), Basic Attention Token (BAT), Sai (Deprecated), Augur v1 (Deprecated) and others.
For those who are just new to the COMP should check the comprehensive guide to the Compound protocol, based on the Compound Whitepaper. Also, the codebase of the protocol is hosted on Github and it is maintained by the community. These docs provide the needed answer to almost all the queries like supplying assets to Compound Protocol, Borrowing assets from the Compound Protocol, Contributing to the protocol, delegation and voting, building a governance interface and lot more.
