Crypto lending platform Compound has approved a proposal that will see all users of the platform receive a new token called COMP from June 15, as revealed by a tweet from the startup on June 10. It recently completed a testnet run of the COMP token.
Compound Governance Proposal 007, as it is formally known, saw a 100% approval rate for the changes, led by Polychain Capital. The proposal was first announced on May 27, 2020. The proposal reads,
Every Ethereum block, 0.50 COMP will be distributed across ETH, DAI, USDC, USDT, BAT, REP, WBTC and ZRX markets, proportional to the interest being accrued in the market; as conditions evolve, the allocation between markets is updated...within each market, half of the COMP is allocated to suppliers, and the other half to borrowers.
In other words, the token will be distributed to users based on their usage.
Like other lending platforms of its kind, Compound allows users to take loans against crypto collateral. It is the second largest lending platform, behind MakerDAO (MKR), which accounts for most of the ETH locked in the decentralized finance (DeFi) space.
While Compound’s roughly $100 million in locked ETH is dwarfed by MakerDAO’s $450 million (at the time of publishing), the smaller players in the space have experienced growth - despite a few serious hiccups - as evinced by the growth of the DeFi space as a whole. Synthetic assets in particular, like Wrapped Bitcoin, are showing a growth in usage.
