Compound Loans Review
Best For
- DAI Holders
- Privacy Focused Lenders
Compound is a fully automated, decentralized money market protocol for Ethereum compatible assets. Users and applications can access this protocol from any location, at any time, and borrow against their assets. The Compound protocol is developed and maintained by Compound Labs.
Compound Crypto Loans - 2020 Comprehensive Review
Compound Overview
| APR Rates | 0% |
|---|---|
| Borrow Assets | ETH, DAI, USDC, BAT, REP, ZRX, WBTC, USDT, UNI, comp |
| Rate Variability | Medium Variable |
| Loan Amounts | $1 - $100,000 |
| Receive Funds | Stablecoin : Instant, Crypto : Instant |
| Repayment Type | Interest Only |
| Available Loans | Stablecoins, Crypto |
| Accepted Collaterals | ETH, DAI, USDC, BAT, ZRX, REP |
| Collateral LTV | 50% - 75% |
| Margin Call LTV | 80% |
| Collateral Insurance |  |
| KYC Check | No |
| Platform Fees | .02% Of all Interest Incurred |
| Network Token | |
| Token Benefits | NO TOKEN |
| Platform Type | Decentralized Lender |
| Credit Check | No |
| Supported Regions | All Countries |
| Excluded Regions | Sanctioned Countries |
APR Rates
| Borrow Asset | APR Rate |
|---|---|
| EthereumETH | 0% |
| DAIDAI | 0% |
| USD CoinUSDC | 0% |
| Basic AttentionBAT | 0% |
| AugurREP | 0% |
| 0xZRX | 0% |
| Wrapped BitcoinWBTC | 0% |
| TetherUSDT | 0% |
| UniswapUNI | 0% |
| Compoundcomp | 0% |
Collaterals Accepted
| Collateral Asset | Collateral LTV |
|---|---|
| EthereumETH | 75% |
| DAIDAI | 75% |
| USD CoinUSDC | 75% |
| Basic AttentionBAT | 60% |
| 0xZRX | 60% |
| AugurREP | 50% |
Compound Crypto Loans Alternatives
Pros and Cons
Pros
- No Lock Up Terms - The Compound protocol permits users to lend and borrow assets for any length of time.
- Liquidity - The Compound protocol currently has over $150M USD value available in liquidity, accessible to users within minutes.
- Global Availability - There are no country or location restrictions when using the Compound Protocol. Users are free to lend and borrow assets from anywhere in the world.
- Developer Friendly - Compound provides excellent documentation for both their protocol and API. Several successful applications have already been built on the protocol with many more currently in development.
- Privacy - Compound does not require KYC checks or personal account registrations in order to access their protocol.
- Strong Backing - Compound is well financed by several top blockchain focused funds. Seed round investors include Coinbase Ventures, Bain Capital Ventures, Andreesen Horowitz, and Polychain capital.
Cons
- Balances Are Not Insured - The Compound protocol is not governed by traditional finance authorities, and therefore, does not maintain insurance for user balances.
- Smart Contract Risks - All smart contract code and balances are publicly verifiable and have multiple third party security audits. Even with these safety measures, users should be aware that this is still a new financial product in an emerging industry. There could be unforecasted risks in play - mainly negligence on the part of the Compound team or security flaws.
- Native Ethereum Assets Only - Users cannot currently lend or borrow assets not directly supported by the Ethereum protocol.
Frequently Asked Questions
Is Compound Finance safe?
Is Compound Finance insured?
Which crypto assets can I borrow with Compound Finance?
Does Compound Finance require users to KYC?
Does Compound Finance accept US customers?
Summary
Compound continues to lead the way as one of the strongest companies in the decentralized finance ecosystem. An experienced team with strong backing has the company well positioned to continue to offer a growing, fully transparent, and decentralized money market protocol.
In the coming years Compound expects to increase the developer base building on the protocol in addition to adding several more assets to its liquidity pool.
Compound is a great option for global users looking to borrow Ethereum (ERC-20) compatible assets while maintaining privacy and control over asset loan durations.
| Learn More | Best Features |
|---|---|
|
Legal & Regulation - Facts & Figures
| Legal Name | Compound Labs, Inc. |
|---|---|
| Incorporated Country | United States |
| Headquarters | San Francisco, CA United States |
| Year Founded | 2018 |
| CEO | Robert Leshner |
| Total Employees | 11-20 |
| Regulators | Not Regulated |
| Links | Website, Crunchbase, Whitepaper, Source code, Twitter, Blog, LinkedIn |
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About The Author
Delton has been writing about blockchain finance & technology, decentralized applications, and crypto assets since 2017. His work has been published and featured by several independent news publications and blockchain projects.
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