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. User can deposit assets and earn interest or borrow assets at interest.
Deposited tokens are converted into cTokens. Learn more about ctokens from Compound Docs.
How does Compound work?
Users can deposit assets into Compound; users receive cTokens which represent their deposit to the protocol. Deposits have a collateral factor and users can borrow against their deposits.
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.
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 I borrow and supply the same asset?
Compound automatically shifts the asset panels if you supply or borrow an asset, to circumvent this utilize a strategy like 'Leverage' or 'Deposit and Borrow' to supply and borrow the same asset.
Compound Asset UI
⚗️ Available Functions
🙌 Supply - Deposits asset from DSA to Compound ⬆️ Withdraw - Withdraws asset from Compound back to DSA ↩️ Borrow - Borrows asset, asset is withdrawn to DSA ⤵️ Payback - Spend asset on DSA to payback debt on Compound
🙌↩️ Deposit and Borrow - Deposits asset from DSA to Compound, and borrows asset. ⤵️⬆️ Payback and Withdraw - Payback debt from DSA, and withdraws asset back to DSA
Advanced Strategies utilize Instadapp Flashloans ⚡
⚖️ Leverage - Borrows asset, converts to collateral and immediately deposits it back into Compound. 🪀 Save / Unwind - Withdraws collateral, and immediately converts asset to payback debt.
💱 Collateral Swap - Swap the underlying collateral asset for another collateral asset 💱 Debt Swap - Swaps owed debt from one asset into another debt to be owed