What Is the COMP Token (Compound)?
The COMP token (Compound) is a decentralized finance (DeFi) protocol that allows users to lend and borrow digital assets. It was created by Compound Labs, an American blockchain technology company founded in 2018. The COMP token serves as the native governance token of the Compound protocol, allowing holders to vote on changes to the network’s parameters such as interest rates and collateral requirements. By staking their tokens, users can earn rewards for helping maintain the network’s security and stability.
The COMP token has been gaining traction since its launch in June 2020 due to its ability to provide liquidity for DeFi projects while also offering attractive returns through yield farming activities. As more people become aware of this new asset class, demand for COMP tokens is expected to increase significantly over time. This could lead to higher prices and greater liquidity for those who hold it long-term or use it actively within the Compound ecosystem.