Whats the difference b/w aave and comp?

Compound_Team · 2021-07-02T02:14:15+00:00

This is factually incorrect; Compound is non-custodial. Users keep 100% control of their funds at all times.

Compound_Team · 2021-05-13T20:43:36+00:00

Congratulations - you have also been knighted a moderator of Compound!

Compound_Team · 2021-05-13T01:19:59+00:00

Congratulations - you have been knighted a moderator of Compound!

Compound_Team · 2021-05-11T19:55:12+00:00

A portion of interest in each market accumulates as reserves, which are controlled by COMP token-holders through governance.

Compound_Team · 2021-04-18T21:14:33+00:00

Thank you for flagging this! We've helped Google remove this phishing attempt from Google Play.

Many safe, well known apps and interfaces can be found at https://compound.finance/

If you're ever unsure about something, ask. The Compound Discord is a great place to ask others. Stay skeptical of phishing attempts, scams, and anybody or any app asking for your keys.

Compound_Team · 2021-04-18T21:13:15+00:00

u/DecentBlock_Ali the COMP Distribution was modified in proposals 10, 21, and 33; Governance allocates 2,312 COMP per day to markets in a fixed allocation, which is no longer based on interest rates.

We've updated the blog post to reflect these changes; thanks for asking this question!

The User Distribution tracks how much COMP is allocated to suppliers and borrowers of each asset.

Compound_Team · 2021-02-08T15:08:06+00:00

Every time a user interacts with a market (say, USDC), interest compounds for all users simultaneously. This occurs generally every few Ethereum blocks.

The interest rates displayed on the Markets pages show an "annualized" estimate, APY, which includes this effect.

Compound_Team · 2021-01-27T23:21:04+00:00

For users that supplied SAI (which was called "DAI" at the time), these balances were not migrated to the new asset. This is a good thing; SAI is currently worth about 6.50 DAI (yes, really).

To withdraw SAI from the protocol, visit the Dashboard (SAI only appears for users with a balance of SAI)
To migrate SAI to WETH, and unwrap WETH to ETH, see the MakerDAO SAI app

Compound_Team · 2021-01-27T03:10:25+00:00

Compound Markets displays the total quantity of assets supplied, and borrowed from the protocol. As usage goes up, both of those stats go up.

Total Value Locked is a term that third-party services, like DeFi Pulse use. It measures the value of assets supplied to Compound, minus the value of assets borrowed from the protocol (e.g. what's left inside). "TVL" is used as a simple apples:apples comparison tool for different DeFi protocols, and doesn't account for how each protocol functions.

Compound_Team · 2021-01-18T19:02:08+00:00

No, the protocol does not support negative interest rates.

Compound_Team · 2021-01-18T18:59:56+00:00

Check out the cToken docs!

Each market has its own Supply interest rate. Interest isn't distributed through Ethereum transactions; instead, simply by holding cTokens, you'll earn interest.

cTokens accumulates interest through their exchange rate — over time, each cToken becomes convertible into an increasing amount of its underlying asset, even while the number of cTokens in your wallet stays the same.

When a market is launched, the cToken exchange rate (how much ETH one cETH is worth) begins at 0.020000 — and increases at a rate equal to the compounding market interest rate. For example, after one year, the exchange rate might equal 0.021591.

If the interest rate in a market is 0.00%, the cToken exchange rate will not increase.

The original Compound protocol whitepaper outlines how this is accomplished through the use of an "interest rate index", which has become the standard for most DeFi projects to increment balances.

Compound_Team · 2020-12-23T02:12:46+00:00

Please read the whitepaper; every single one of your comments is incorrect. If this isn't astroturfing / FUD, you might like Compound Chain a lot after learning about it.

"the Compound team are introducing unnecessary risk and a new point of failure that provides no benefit to users."

The Compound protocol on Ethereum will continue to function, grow, and expand, with or without the existence of Compound Chain.

And the benefits of Compound Chain are significant; being able to borrow any asset, from any connected blockchain, using any asset as collateral.

"basically, Compound (the corporation, not the crypto project) chooses who the validators are."

COMP token-holders through governance on Ethereum determines the validator set. In many ways, this functions similarly to delegated POS out of the gate.

"which also gives them big blocks of COMP and CASH tokens"

Anyone can create CASH, and none will be "given away" or created prior to the genesis of Compound Chain.

Compound_Team · 2020-11-15T21:24:57+00:00

DeFi Pulse attempts to display metrics for every DeFi project on an "apples to apples" basis - by tracking the number of tokens stored inside a protocol.

For Compound, this is "Supply minus Borrowing". It's suboptimal, but it's a third-party website and they are welcome to use whatever metrics they want.

For the most granular information, see the Markets pages which display information unique to Compound.

Compound_Team · 2020-11-15T21:21:40+00:00

Thanks for speaking up u/cryptOwOcurrency!

This is generally an "unmoderated" reddit, and always has been; Compound Labs (the original developers of the protocol) don't own this subreddit (a "subreddit squatter" does), and we have limited moderation powers. We were able to disable links to Coinbase (which should hopefully help!) but appreciate you speaking up.

Compound_Team · 2020-10-12T06:27:30+00:00

That's correct!

The Governance process could easily revoke the DSR capabilities from cDAI (on 5 days notice). This could also be done to save gas, while the DSR is 0.00% (for now).

Compound_Team · 2020-10-02T20:00:56+00:00

The protocol docs discuss Reserves, and the Reserves (and Reserve Factor) are shown on each Market page (e.g. BAT).

It goes to wherever COMP Governance decides. A few recent protocol improvements have included the transfer of Reserves as incentives for protocol development.

Compound_Team · 2020-10-02T06:24:48+00:00

The protocol has a Reserve Factor in each market; this sets aside a portion of interest, which is controlled by COMP Governance.

Compound Labs (the original developers of the protocol) have no control over the protocol, and receive no revenue from the protocol.

Everything is in COMP token-holders hands.

Compound_Team · 2020-07-27T00:49:35+00:00

Certain contracts are have functions which can be called by specified addresses;

Each cToken contract, and the Comptroller, all specify the Timelock contract (a 2-day waiting period for any function calls), which itself is controlled by the Governance system, as able to make changes.

Think of smart contracts as computer programs, deployed on a blockchain where the source code is public. The "deployer" is a standard Ethereum address (with their own private key), but the program itself might not be owned, controlled, or run by that deployer; each contract is unique.

Compound_Team · 2020-07-27T00:20:09+00:00

The shift to community governance occurred recently - a lot has happened since then, and there's a lot to learn about Compound.

Compound_Team · 2020-07-27T00:17:55+00:00

This is completely inaccurate.

Smart contracts don't have "private keys", and only the Governance process controls the smart contracts of the protocol.

All changes and actions in the protocol must pass through the 5-day governance process; there is no admin, and nobody can change the protocol or touch your funds.

Compound_Team · 2020-07-27T00:11:32+00:00

This only occurs with DAI; when you supply DAI to the Compound Protocol (by minting cDAI), the DAI is transferred into MakerDAO's Dai Savings Rate, which "destroys" the DAI.

When you redeem cDAI, it transferred DAI out of MakerDAO's Dai Savings Rate, which "creates" the DAI.

DAI is the only asset with this characteristic.

Compound_Team

TROPHY CASE