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

Overall Score:

8.5
Trusted
Global Access:
10 of 10
Loan Options:
6 of 10
Easy of use:
7.5 of 10
Trust:
9 of 10
Fees & Rates:
8 of 10
Support:
7.5 of 10

Compound Overview

APR Rates0%
Borrow AssetsETH, DAI, USDC, BAT, REP, ZRX, WBTC, USDT
Rate VariabilityMedium Variable
Loan Amounts$1 - $100,000
Receive FundsStablecoin : Instant, Crypto : Instant
Repayment TypeInterest Only
Available LoansStablecoins, Crypto
Accepted CollateralsETH, DAI, USDC, BAT, ZRX, REP
Collateral LTV50% - 75%
Margin Call LTV80%
Collateral InsuranceNo
KYC CheckNo
Platform Fees.02% Of all Interest Incurred
Network TokenNo
Token BenefitsNO TOKEN
Platform TypeDecentralized Lender
Credit CheckNo
Supported RegionsAll Countries
Excluded RegionsSanctioned Countries

APR Rates

Borrow AssetAPR Rate
EthereumETH0%
DAIDAI0%
USD CoinUSDC0%
Basic AttentionBAT0%
AugurREP0%
0xZRX0%
Wrapped BitcoinWBTC0%
TetherUSDT0%

Collaterals Accepted

Collateral AssetCollateral LTV
EthereumETH75%
DAIDAI75%
USD CoinUSDC75%
Basic AttentionBAT60%
0xZRX60%
AugurREP50%

Compound Crypto Loans Alternatives

Rating8.5/108.5/108.5/10
Best Stablecoin APRETH 0%USD 5.9%USDC 4.5%
Collateral LTV50% - 75%15% - 75%20% - 50%
Margin Call LTV80%80%70%
Fiat LoansNoYesYes
Collateral InsuranceNoYesNo
KYC CheckNoYesYes
Credit CheckNoNoNo
Learn MoreReviewReviewReview

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

Compound's Official Website

  • The largest decentralized money market protocol.
  • Borrow DAI, and USDC without KYC with up to 75% LTV on Ethereum ETH (Highest LTV in the market).
  • Available crypto assets to borrow can be used to short the assets market.

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

Methodology: How We Review And Compare

Our mission is to provide the most informative, unbiased, and useful reviews and comparisons possible for products and services in the blockchain finance industry. Assessments are powered by experts with years of relevant experience.

The crypto lending platforms found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our crypto loan reviews and comparisons include: APY rates, available assets, loan amounts, loan options, LTV ratios, platform fees, reputation, ease of use, loan terms and fees, and customer support.

The Blockfer Promise: We do everything in our power to keep content up to date and in the best interests of our audience. Blockfer does not shy away from poor ratings. Products or services that do not meet our reputability standards will be rated as 'Not Trusted'. Compensation from partners does not, and will never, effect our review process.

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