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Compound is a decentralized finance (DeFi) money markets protocol that allows users to 1) lend cryptocurrencies to earn interest on their holdings, or 2) lend crypto to then borrow more crypto against their holdings for do-it-yourself loans.
This non-custodial lending platform operates on Ethereum and uses smart contracts to enable seamless, secure, and transparent transactions between borrowers and lenders. By removing the need for middleman financial institutions, Compound has helped democratize access to financial services in the burgeoning cryptoeconomy.
Compound was originally founded in 2017 by Robert Leshner and Geoffrey Hayes. The team launched the first version of the protocol — the inaugural money market protocol on Ethereum — in 2018, followed by the release of its second iteration on the Ethereum network in May 2019. Then in August 2022, the latest “Comet” V3 protocol was launched.
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