COMP is a governance token for the Ethereum-based lending app was first launched in February by the Compound lending platform. After being started releasing to users, the total value locked (TVL) on Compound has broken $200 million for the first time and expressly this is on the way to $300 million.
As reported, users of the Compound lending token will begin earning COMP tokens in mid-June. COMP emits fresh COMP every day to both lenders and borrowers and users are capable of depositing one token and borrowing another. The week is remarkable in decentralized finance (DeFi) because users scramble to earn the daily rewards of COMP. Borrowers can convert the borrowed USDT to USDC to maximize their COMP earning.
Compound’s TVL has hit $50 million and the DeFi market was flashy this week with Compound. Coinbase invested in Compound’s $8.2 million seed around in 2018 and Coinbase Pro announced it will soon list COMP as well as CoinFlip, which runs a Bitcoin ATM network in the U.S., would also list USDC on its machines.
Up to 10% of the total supply of USDC is currently locked on Compound. Another point is to mark is that the total number of tether (USDT) on Compound is up almost 8000%. COMP from its releasing time to date, it has had more volume on the stable exchange curve.
The market cap of COMP will remain over a billion dollars as long as the token’s price remains above $100. The situation has raised expectation in Haseeb Qureshi, managing partner of Dragonfly Capital, and he sees a long-term prospects of Compound.