🟢 Compound Internals

Compound pioneered algorithmic money markets on Ethereum. Suppliers earn interest automatically through cTokens — ERC-20 wrappers whose exchange rate grows over time. Borrowers post overcollateral and pay variable rates determined by pool utilization. The protocol is fully governed by COMP token holders.

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cTokens & Supply

How supplying assets mints cTokens — an interest-bearing wrapper that appreciates over time

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Interest Rate Model

Compound's jump-rate model — utilization drives rates with a sharp kink at optimal usage

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Governance & COMP

On-chain governance with COMP tokens — propose, vote, timelock, and execute protocol changes