Compound Finance
Lend and Borrow assets using the Compound Protocol
Last updated
Lend and Borrow assets using the Compound Protocol
Last updated
Compound Finance is a decentralized protocol for lending and borrowing. Compound utilizes algorithmic formulas to determine rates. Compound Protocol is governed by COMP holders.
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.
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.
