Compound Finance
Lend and Borrow assets using the Compound Protocol
What is Compound Finance
Compound Finance is a decentralized protocol for lending and borrowing. Compound utilizes algorithmic formulas to determine rates. Compound Protocol is governed by COMP holders.
How does lending work on Compound?
Assets deposited into Compound Finance have a Collateral Factor. The Collateral factor is the percentage of value that can be borrowed against a particular asset. Collateral Factor
Collateral Factor is the percentage a user can borrow against a particular asset.
How do liquidations work on Compound?
When a position becomes undercollateralized that position's collateral assets can be liquidated at a slight discount to pay back the debt. Positions on Compound can be partially liquidated, liquidation ends once the user's position becomes fully collateralized.
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