What types of assets can be used in Compound transactions?
Compound is a decentralized finance (DeFi) protocol that enables users to borrow and lend crypto assets.
It allows users to lend and borrow a variety of digital assets, including Ethereum (ETH), Basic Attention Token (BAT), Augur (REP), 0x (ZRX), Dai (DAI), USDC, and more. Compound also supports a wide range of other tokens, such as Wrapped Bitcoin (WBTC), Chainlink (LINK), MakerDAO’s DAI stablecoin, and others. Compound transactions are powered by smart contracts on the Ethereum blockchain.
These smart contracts allow users to deposit their digital assets into the Compound protocol and earn interest on them. The interest rate is determined by the supply and demand of each asset in the Compound pool. In addition to earning interest on their deposits, users can also borrow assets from the Compound pool at a variable interest rate.
The interest rate is determined by the supply and demand of each asset in the Compound pool. Borrowers must also provide collateral in order to secure their loan. Compound transactions are secure, transparent, and trustless due to their reliance on smart contracts.
All transactions are recorded on the Ethereum blockchain, ensuring that all parties involved can verify that they have received what they were promised.
