# Compound

> Building infrastructure for the future of finance.

Compound helps users earn interest on crypto assets and borrow against collateral through algorithmic money markets on Ethereum and compatible chains.

Compound helps DeFi users earn interest and borrow digital assets through algorithmic money markets. Users can supply assets to liquidity pools to earn interest or borrow against collateral without intermediaries. The protocol uses smart contracts to manage interest rates based on supply and demand, with rates adjusting automatically as market conditions change. Compound supports multiple blockchains and has processed billions in transactions since launching in 2018.

- Type: Project
- Sector: Finance
- Status: Active
- Founded: 2017-08-01
- Profile: https://thegrid.id/profiles/compound

## Products

- [Compound v2](https://thegrid.id/profiles/compound): Compound v2 provides pooled liquidity markets enabling users to supply assets as collateral and borrow multiple asset types. The system uses cTokens as receipt tokens representing supplied assets, with interest rates determined algorithmically based on utilization. Users can borrow any supported asset against their collateral while earning interest on supplied funds. (Decentralised Borrowing & Lending, Live, Main Product)
- [Compound III](https://thegrid.id/profiles/compound): Compound III provides single-asset borrowing markets with isolated collateral pools for enhanced security and capital efficiency. Each deployment supports borrowing one base asset using approved collateral types that remain user property unless liquidated. The protocol features reduced gas costs, lower liquidation penalties, and algorithmic interest rates while eliminating pooled-risk across multiple borrowable assets. (Decentralised Borrowing & Lending, Live)

## Assets

- [Compound (COMP)](https://thegrid.id/profiles/compound): COMP is the governance token of Compound protocol. It is used to propose and vote on protocol decisions, from interest rates to asset listings. Token holders can delegate voting rights to any address, enabling participation directly or through representatives without transferring ownership. (Governance)

## Links

- [Main](https://compound.finance)
- [Terms of Service](https://v2-app.compound.finance/#terms)
- [Blog](https://medium.com/compound-finance)
- [Governance](https://www.tally.xyz/gov/compound)
- [Documentation](https://docs.compound.finance)
- [Whitepaper](https://compound.finance/documents/Compound.Whitepaper.pdf)
- [Forum](https://www.comp.xyz)
- [GitHub](https://github.com/compound-finance)
- [Discord](https://discord.com/invite/rps4rfjeGz)
- [Twitter / X](https://x.com/compoundfinance)

## Legal

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Model 2 - commercial licenses. The Grid Data Service (TGDS) is also available as a commercial license. See [Web Services Terms](https://about.thegrid.id/legal/web-services-terms) for commercial use that is not covered by the open data service.

The following applies to both licensing models.
- All data is provided AS IS with no guarantees of accuracy.
- The Grid does not provide investment, legal, or tax advice, and
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- [Data Licensing & Disclaimers](https://about.thegrid.id/legal/data-licensing-and-disclaimers): Licensing models and disclaimers
- [Open Data (ODbL)](https://about.thegrid.id/legal/open-data): Open Database License terms and scope for The Grid's open data service.
- [Attribution Guidelines](https://about.thegrid.id/legal/open-data-attribution-guidelines): How to attribute The Grid's data when using the open data service.
- [Web Services Terms](https://about.thegrid.id/legal/web-services-terms): commercial Terms for using data services.
- [All Legal Documents](https://about.thegrid.id/legal): Full index of terms, policies, and disclosures

## Optional

- [TGS Field Descriptions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/tgs-field-descriptions.md): Schema field definitions for The Grid's data model
- [TGS JSON Structure](https://github.com/The-Grid-Data/workspace-public/blob/main/references/tgs-json-structure.md): Data model structure and relationships
- [Product Type Definitions](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-definitions.md): Definitions for each product type
- [Product Type Classification](https://github.com/The-Grid-Data/workspace-public/blob/main/references/product-type-classification.md): Guide for classifying products into types
- [Grid MCP Guide](https://github.com/The-Grid-Data/workspace-public/blob/main/grid-search/skills/grid-query/references/grid-mcp-guide.md): How to query The Grid programmatically via MCP