# Compound

> The global market for capital

Compound is a decentralized lending protocol. It lets users earn interest by supplying crypto assets and borrow stablecoins and other assets against collateral on Ethereum and other EVM networks.

Compound is a decentralized lending protocol that lets users supply crypto assets to earn interest and borrow against posted collateral. It runs as open-source smart contracts on Ethereum and other EVM networks and is governed by holders of the COMP token. Borrowers keep exposure to their assets while accessing liquidity, and lenders can withdraw at any time subject to available liquidity.

Compound III, the current version, uses isolated markets in which each deployment lends a single base asset, a stablecoin or wrapped ether, against a set of approved collateral assets. Interest rates adjust algorithmically with utilization, and positions that fall below required collateral levels are liquidated. A Compound Institutional Market offers USDC borrowing against curated collateral with per-collateral caps.

Markets run on Ethereum and multiple other EVM networks, and the earlier Compound v2 pooled-market protocol is on Ethereum. Protocol changes pass through Compound Governance, while the Compound Foundation supports ecosystem growth, partnerships and governance coordination. It is used by lenders, borrowers, DeFi integrators and governance participants.

- 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 was the pooled lending market of Compound, where users supplied assets as collateral and borrowed other supported assets. Supplied assets were represented by cTokens, and interest rates were set algorithmically by utilization. Compound has deprecated v2 and asks users to move their positions to v3. (Decentralised Borrowing & Lending, Inactive/Support Ended, 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://www.compound.xyz)
- [Terms of Service](https://www.compound.xyz/terms-of-service)
- [Blog](https://medium.com/compound-finance)
- [Governance](https://www.tally.xyz/gov/compound)
- [Documentation](https://docs.compound.xyz)
- [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)

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- [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
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