DeFi on TokenPocket | How to Earn COMP?
Author: TokenPocket team
What is Compound?
Like most Decentralized Finance (DeFi) protocols, Compound is a system of openly accessible smart contracts built on Ethereum. Compound focuses on allowing borrowers to take out loans and lenders to provide loans by locking their crypto assets into the protocol. The interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Interest rates are generated with every block mined. Loans can be paid back and locked assets can be withdrawn at any time.
What is COMP?
In February this year, Compound announced the launch of COMP token, in order to realize the complete decentralization of Compound Protocol governance. Compound also established a community with token holders as its members. Community members can make amendments to the protocol through proposals and voting, replacing the current centralized governance way centering with the development team.
How it Works
According to its official article, COMP has a total supply of 10 million, out of which 4.23 million will be given to Compound users, completely free of charge. Compound believes that all the users of the protocol and applications developed on Compound will continuously and automatically gain governance rights.
4,229,949COMP will be placed into a Reservoir contract, which transfers
0.50COMP per Ethereum block (~2,880 per day) into the protocol for distribution
The distribution is allocated to each market (ETH, USDC, DAI…), proportional to the interest being accrued in the market; as market conditions evolve, the allocation between assets does too
Within each market,
50%of the distribution is earned by suppliers, and
50%by borrowers; in real-time, users earn COMP proportionate to their balance; this is separate from the natural interest rates in the market
Once an address has earned
0.001COMP, any Compound transaction (e.g. supplying an asset, or transferring a cToken) will automatically transfer COMP to their wallet; for smaller balances, an address can manually collect all earned COMP
(Expanding Compound Governance by Robert Leshner)
How to Earn COMP?
- Search [Earn COMP] on the Discover page and open https://app.compound.finance/vote on TokenPocket Dapp browser.
- Choose a token for collateral. Here we use ETH as an example. Please note that the transaction costs GAS.
- Set the amount of GAS you plan to pay and wait for the transaction to be broadcast. You can also check the details in the Explorer.
After the transaction is broadcast, select the amount of ETH to be supplied. Complete payment and wait for the broadcast.
After supplying a certain amount of the token selected, you will be able to see the related information on the interface. Tap on Vote and to see the COMP token you earned, which will be available for withdrawal after certain conditions are met.
Please note that:
- After supplying USDT, Compound will send cUSDT to your address based on the ratio of 1 USDT=50 cUSDT. (cUSDT can be regarded as a certificate and will be deducted when you withdraw the supplied USDT)
- COMP balance: You can directly manage the balance of COMP in your address
- There are two ways to transfer the COMP earned into balance:
- When the accumulated COMP exceeds 0.001, it will be automatically transferred in the later lending actions. This way doesn’t require extra operation and is recommended.
- Select Collect on the interface to complete the transfer, which will cost GAS.
- Three steps are involved in the process to earn COMP (the order of step 1 and 2 can be swapped):
- Switch on Collateral
- Launch supply
- Authorize the supply
Start your journey of discovery
- Download TokenPocket from App Store or Google Play
- Go to [Discover] and search for [DApps]