Compound Interest Account Review
- DAI Holders
- Privacy Focused Lenders
Compound is an Ethereum based protocol that enables users to deposit their ERC20 crypto assets into a decentralized money market pool. These asset balances then accrue fluctuating interest rates based on supply and demand.
Compound Interest Account - 2020 Comprehensive Review
Compound Interest Account Overview
|Interest Earning Assets||ETH, DAI, USDC, REP, ZRX, BAT, WBTC, USDT, comp, UNI|
|Rate Variability||Medium Variable, High Variable|
|Earn Interest on||Stablecoin, Crypto|
|Deposit Amounts||$0 - $1,000,000|
|Token Benefit||No Token|
|Platform Type||Decentralized Lender|
|Platform Fees||No Fees|
|Supported Regions||All Countries|
|Excluded Regions||Sanctioned Countries|
Compound Interest Rates (APY)
|Earn On||APY Rate|
Compound Interest Account Alternatives
Pros and Cons
- No Lock Ups - Compound does not impose any duration restrictions on deposited crypto assets. Users may withdraw at any time, without penalty.
- Global Accessibility - Users looking to earn interest on their crypto assets via the Compound protocol can do so without any geographical restrictions.
- Wallet Integrations - The Compound protocol supports a variety of crypto asset wallets including Coinbase Wallet, Ledger, & Metamask.
- Privacy - Compound does not require users to verify their identity via KYC checks or submit any personal information in order to access the platform.
- Institutional Support - Andreesen Horowitz, Coinbase Ventures, Bain Capital Ventures, Polychain, and other prominent venture capital firms have all invested in Compound Labs.
- Supply APR - Compound’s interest rates fluctuate due to supply and demand. This makes it more difficult to calculate the future investment value of deposited crypto assets.
- Bitcoin Interest Currently Unavailable - Compound does not currently support non ERC20 compatible crypto assets. Users looking to earn interest on their Bitcoin can see our Nexo Interest, BlockFi Interest, and Celsius Interest reviews
- Balances Not Insured - Users deposit crypto assets at their own risk into the Compound protocol smart contract. Compound is not a regulated or licensed entity and as a result, there is no balance insurance offered.
Frequently Asked Questions
Is Compound safe?
Historically, Compound has been very safe. The protocol has yet to experience any security breaches and user funds are held in non-custodial Ethereum smart contracts.
Is Compound insured and regulated?
User crypto assets are not insured on Compound and the platform is not regulated. It is important that users understand this and proceed to use the protocol responsibly.
Does Compound require users to KYC?
No. Compound is globally accessible and does not require users to complete a KYC process to use the platform.
Can I earn interest on my Bitcoins with Compound?
Compound supports Wrapped Bitcoin (WBTC), an ERC20 token that is collateralized 1:1 by Bitcoin. The required Bitcoin collateral is held by a trusted custodian and governed by dozens of companies in the decentralized finance ecosystem. Current interest rates for WBTC are not as attractive as native Bitcoin interest rates found on centralized crypto asset lenders.
Which crypto asset wallets has Compound integrated with?
Users can access the Compound protocol with the following wallets: Ledger, Coinbase Wallet, and Metamask.
As of 2019, Compound remains one of the most decentralized options available for users looking to earn interest on their native Ethereum crypto assets. The protocol has attracted a considerable amount of development interest, including integrations with Coinbase Wallet, Huobi Wallet, Dharma, and more.
Compound Labs has strong venture capital backing and the required resources to continue their impact on the decentralized finance ecosystem. When non-native Ethereum assets become available on the protocol, we expect Compound to be drive even more user adoption.
Overall, Blockfer recommends Compound for users willing to sacrifice higher interest rates for more privacy. Crypto asset loans with attractive rates can also be obtained on the platform due to high demand for their available interest products.
|Learn More||Best Features|
Compound's Official Website
Legal & Regulation - Facts & Figures
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Methodology: How We Review And Compare
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The interest product providers found in this category have been tested extensively by our team as part of the review process. Factors we analyze in our interest product reviews and comparisons include: APR rates, compound interest, available assets, terms and fees, and deposit amounts.
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