is compound crypto a good investment

What is compound 

Compound founded by the economist robert leschner is a decentralized finance or Defi protocol it is built on a system of accessible Smart contracts Built on the ethereum blockchain.


Compound allows lenders to provide loans and borrowers to take them out by locking their respective crypto assets in the protocol, its native token comp, enables users to earn interest transfer and trade their money, comp tokens are created each time a user deposits, their crypto assets into compounds protocol those users automatically receive the comp equivalent of the deposited currency as collateral.


Compound crypto


when making a anyone can create comp using an ethereum wallet, and any of the crypto assets that compound accepts, these tokens automatically earn the user interest, and they can be redeemed for the corresponding cryptocurrency at any time, the interest rates are determined by supply and demand changing with each block that gets mined.


other than earning interest on your crypto assets compound allows you to borrow crypto, your collateral has to stay above a minimum amount when borrowing these assets or else compound will liquidate your collateral to repay the loan, once loans get paid back the locked Assets are allowed to be withdrawn at any time.


 When a user's crypto assets are converted to erc20 compliant, in that they are freely tradable and movable, they also become available for use in other decentralized applications,

  This allows for the ability to combine different protocols and the building blocks on which Defi's most important feature focuses.


On giving users more control and better access to their crypto assets as they earn and hold, they aim to fully decentralize over time and transfer the protocol's authority to the decentralized autonomous organization governed by the community.

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