The Compound in the USA,
The compound is a cryptocurrency that aims to provide liquidity in the ecosystem. Users can not only borrow money against a deposit, they can entrust their funds to the liquidity pool themselves and thus generate some passive income. The current effective annual interest that you get on Compound for different assets can be found directly on the website Cryptocurrency USA & Binance. The borrow corresponds to the rate that investors have to pay for a loan, so it is of no interest to us. The supply is what interests us, as it is the rate of return that investors can expect on lending their own money. For the most part, the interest reminds you of what you get on your savings account. The hype surrounding cannot be denied. Many investors have deposited their Compound as security in order to collect the currently very limited rate. In total, only 0.2 % of the total amount of Compound is currently in circulation. Compound pays borrowers and lenders on a daily basis. This is currently the only way to earn a Compound. In addition, other tokens can also be deposited. In addition, the community can use their compounds to decide whether and which tokens can be deposited next as security.
The compound has had a dream start and the debut could provide further positive impulses. In its basic idea, Compound occupies a growth market, which offers great potential with manageable competition. So it doesn't take a lot of imagination for further price gains.
Interest is paid on deposits in cryptocurrencies. The industry is booming, most recently the mark of billion US dollars in volume was taken. The majority of this goes to solutions. The compound, on the other hand, is designed as a Defi, where recipients of crypto loans come together directly and in a decentralized manner without a central intermediary. Accordingly, Compound was able to take over the top position in this sector from the start and now ties up more than 500 million US dollars in smart contracts more capital than comparable projects.
Due to the current situation, many borrowers on Compound have decided to make their loans available in the form of outside capital. This lever can be used to generate additional coins. In principle, this approach is very risky, as the borrowers usually cannot provide any further security. Nevertheless, the positive influence on the price of buying a compound cannot be denied. In addition, the capital deposited in Compound has increased in the last few days. But in addition to all these effects, the listing caused another hype. This listing came as a bit of a surprise for market participants because normally this only happens as soon as a cryptocurrency has a certain track record - in principle, established coins offer better liquidity.
If you pay closer attention, you will quickly notice that many have already invested in Compound as part of a financing round. Consequently, one can assume that the listing took place out of pure self-interest. After all, a listing on a renowned crypto exchange ensures better prices and thus an advantage for Compound.