Compound
compRank #186Compound (COMP): the governance key to one of DeFi's original money markets
Compound (COMP) is the governance token of Compound Finance, one of the first algorithmic money markets on Ethereum, where suppliers earn and borrowers pay interest rates that adjust automatically with each pool's utilization.
How COMP governance and delegation work
COMP itself confers no direct claim on protocol revenue; it confers votes. Holders delegate voting power to any address, and anyone controlling roughly 1% of delegated supply can propose changes such as listing a new asset, adjusting a collateral factor, or rewriting an interest-rate model. That delegation design deliberately separates governance participation from token ownership, letting non-holders steer the protocol if they earn enough delegated weight.
From yield-farming pioneer to fading share
Compound's June 2020 launch of COMP distribution kicked off the yield-farming wave, and for a stretch it defined on-chain lending. Since then Aave has largely overtaken it on features and total value, and the governance-only structure means the token's value tracks influence and treasury more than cash flow. The bull case is a battle-tested, conservatively managed blue chip with a durable brand; the bear case is fading market share, smart-contract and collateral risk, and weak value accrual. It fits DeFi participants who want a governance stake in a legacy lending market.
- 1. Choose an exchange. Pick a reputable exchange that lists COMP — among the venues we rate highest are Binance, OKX and Kraken.
- 2. Create & verify your account. Register, enable two-factor authentication, and complete identity verification (KYC).
- 3. Deposit funds. Add money by bank transfer, card, or a stablecoin, depending on what the exchange supports in your region.
- 4. Buy COMP. Search for COMP, choose a market or limit order, enter your amount, and confirm.
- 5. Secure your coins. For long-term holdings, withdraw COMP to a self-custody wallet you control rather than leaving it on the exchange.
Compare venues in our independent exchange ratings. This is not financial advice.
What is Compound (COMP)?
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Compound (COMP) is the governance token of Compound Finance, one of the first algorithmic money markets on Ethereum, where suppliers earn and borrowers pay interest rates that adjust automatically with each pool's utilization.
What is Compound used for and how does it work?
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## How COMP governance and delegation work
What is the market cap and rank of Compound?
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Compound has a market capitalization of $164.15M, ranking #186 among all cryptocurrencies, on 24-hour trading volume of $6.59M.
How many COMP are in circulation?
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There are 9,668,189 COMP in circulation out of a maximum supply of 10,000,000 COMP.
What is the all-time high of Compound?
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Compound reached an all-time high of $854.45 on May 11, 2021. It currently trades 98% below that level.
Is Compound a good investment?
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Simple Crypto Signal does not provide financial advice. Compound's June 2020 launch of COMP distribution kicked off the yield-farming wave, and for a stretch it defined on-chain lending. Since then Aave has largely overtaken it on features and total value, and the governance-only structure means the token's value tracks influence and treasury more than cash flow. The bull case is a battle-tested, conservatively managed blue chip with a durable brand; the bear case is fading market share, smart-contract and collateral risk, and weak value accrual. It fits DeFi participants who want a governance stake in a legacy lending market. As with all crypto, Compound is volatile and can lose value quickly — do your own research before investing.