Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.
When a user supplies assets such as Ethereum to the Compound protocol, they receive cTokens in exchange. cTokens allow users to earn interest at a variable rate instantly. Interest is accrued with every ethereum block, and cTokens increase in value relative to the underlying asset. Users can also use cTokens as collateral to borrow assets. Read more