When is comp issued every day (comp currency prospects)

08/10/2023 10:07 • Tech Trends • 53 views

When is comp issued every day? Compo is the governance token of the decentralized lending protocol provided by the Compound Foundation, which provides community incentives and platform revenue support. The project has received investments from multiple institutions including Polychain Capital, Pantera Capital, and Coinbase Ventures, and plans to launch other DeFi applications and features in the future.

At the time of writing this article, Compound’s total market value is $278 million, with a trading volume of approximately 1.8 billion yuan (about 37,600 transactions).

Compound is a decentralized money market ecosystem and one-stop financial service website. Users can create their own cryptocurrency assets as collateral for deposits and borrowings; use Compound to earn interest and also receive rewards. Compound’s first product is the stablecoin USDC, and the second product is comp.finance, which is a type of composable cryptocurrency that generates a new liquidity and price discovery mechanism through its automated market maker algorithm (AMM). Compound will anchor the existing value of the US dollar to the Ethereum blockchain, creating a new decentralized economy.

Comp is issued every week, divided according to the time points given by the official. There will be different quantities of comp tokens each month, and these tokens will be released in different blocks, and the price will be continuously adjusted following market dynamics. Starting from now, the Compound team will continue to increase the supply of comp tokens and regularly add more liquidity pools, such as the COMP-ETHLP Token on Compound, which will be fully released in the next few days. (Please note: this token will not be directly deposited into any exchange). If holders do not want to participate in governance, they can vote on what they want in the main network; however, when using other tokens, it is necessary to consider the following two issues: 1) How to ensure that there is no manipulated price on the main network; 2) How to ensure that everyone participating is operating on the original chain or off-chain (for example, the COMP/ETH pool on Compound); 3) How to maintain the average interest rate on the original chain (such as above $1) and lock it when continue mining on the main network; 4) What is the transaction fee rate on Compound, and so on. All of this is to solve the problems that arise on Compound, because Compound has two types of governance tokens, namely “fixed fees” and “additional income”. Simply put, users can pay fees or buy various goods and services by purchasing comp tokens without paying any transaction fees. Therefore, as long as there is sufficient funds on Compound before the main network is launched, they can participate in liquidity mining. But due to lack of actual economic use (such as DAI in Compound, there are certain limitations in terms of income generation).

Comp Currency Prospects

The prospects for comp are very promising. According to coinmarketcap, the current market value of the cryptocurrency Compound (COMP) exceeds $100 million, with a price increase of more than 20% in the past 24 hours. According to coinmarketcap data, the coin has surged more than 30% recently, and its current valuation has reached 3 billion US dollars.

It is reported that after Compound officially launched in August 2020, the price of its token COMP also quickly soared. The highest price before the publication of this article was around $5; as of now, it is around $6, with a cumulative decrease of about 10% in the past month. However, based on historical trends, its long-term development outlook is not optimistic and there is still some room for correction.

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When is comp issued every day (comp currency prospects)

Comp Currency Prospects

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