Compound is a DeFi protocol that runs on the Ethereum blockchain, offering users the opportunity to earn interest by depositing their cryptocurrencies into lending pools. In return for their deposits, users receive cTokens that can be freely transferred but can only be utilized for the original cryptocurrency that was deposited. To incentivize participation, Compound rewards users with COMP coins. Borrowers can obtain loans by providing collateral, but there is a risk of liquidation if the borrowed asset exceeds the value of the collateral. This article aims to address the questions regarding Compound (COMP) and how to purchase Compound (COMP) using TRY.
Compound is a DeFi protocol that functions on the Ethereum blockchain. It aims to encourage a decentralized network to operate a traditional money market without the need for traditional financial intermediaries such as banks. Compound enables the lending and borrowing of various cryptocurrencies within its ecosystem. By depositing cryptocurrencies into Compound, users can earn interest on their assets. When users deposit cryptocurrency into Compound, they receive cTokens like cETH, cBAT, or cDAI, representing their deposit. These cTokens can be freely traded or transferred but can only be used for the original deposited cryptocurrency. The process is automated by Compound’s code, allowing users to withdraw their deposits at any time.
To promote user engagement, Compound uses COMP coin as its native cryptocurrency. Users earn COMP coins whenever they interact with the Compound market, whether through borrowing, repaying, or withdrawing assets. This model has attracted users and inspired similar approaches in other DeFi projects. According to DeFi Pulse, over $500 million worth of assets were locked in the Compound protocol by the year 2020.
Compound connects lenders and borrowers through smart contracts on the Ethereum network. The platform caters to two primary user types: lenders and borrowers. Lenders can send their cryptocurrencies to an Ethereum address controlled by Compound to earn interest, while borrowers provide collateral in the form of cryptocurrency to borrow other supported cryptocurrencies up to a certain percentage of the collateral’s value.
Lenders receive COMP coins based on the amount of cTokens held in their wallets, and interest rates are determined by the current supply of the asset. The more liquidity in a market, the lower the interest rate. This mechanism enables users who lend assets to the protocol to borrow any other supported cryptocurrency up to the collateral’s provided amount.
A key aspect of borrowing on Compound is the risk of liquidation. If the value of the borrowed asset surpasses the collateral’s value, the borrower may face liquidation. This ensures the protocol’s solvency and instills trust in the system for lenders.
Binance TR is a top cryptocurrency exchange for Turkish investors looking to purchase Compound (COMP). It offers a quick account setup and access to over 100 cryptocurrencies, including COMP. Here are the steps to buy Compound (COMP) using TRY on Binance TR.
Opening an account on Binance TR is straightforward. Visit trbinance.com and proceed with the “Create Account” step. Provide basic details such as email address, phone number, name, surname, date of birth, nationality, and T.C. identity number for account creation. Following this, undergo email/SMS verification to confirm the information and proceed to the identity verification (KYC) step.
Identity verification on Binance TR is essential for security reasons. Complete the verification process through your phone or Binance TR’s official website. Follow the necessary steps to scan the QR code with your phone’s camera for verification.
Depositing TL into your Binance TR account is simple and can be done through all banks. Navigate to the trbinance.com address, select the “Wallet” option, and click on “Deposit.” Choose your preferred bank from the list to proceed with the deposit process.
After depositing funds, you can buy COMP coin with TL by accessing the “Buy-Sell” option on the Binance TR website. Search for “COMP” in the search section, select the COMP/TRY option, enter the desired price and quantity, and complete the purchase by clicking “Buy COMP.”
Binance TR is a cryptocurrency exchange launched by Binance in 2020, specifically catering to Turkish investors. It provides fiat-to-crypto and crypto-to-crypto trading services, leveraging Binance’s technology, security measures, and liquidity. Users in Turkey can deposit and withdraw Turkish lira (TRY) through bank channels and trade various cryptocurrencies with TRY pairs on Binance TR.
Users on Binance TR benefit from market-leading spot trading liquidity, a robust matching engine, advanced security protocols, custody solutions, and risk controls supported by Binance’s core functionalities. Stay updated with our news on Telegram, Facebook, Twitter, and Coinmarketcap.
Disclaimer: The information in this article is not investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
