COMP (Compound) Token Analysis 04/03/2022
Diupdate
Fundamental Analysis:
Compound is a DeFi lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform.
When a user deposits tokens to a Compound pool, they receive cTokens in return. These cTokens represent the individual’s stake in the pool and can be used to redeem the underlying cryptocurrency initially deposited into the pool at any time. For example, by depositing ETH into a pool, you will receive cETH in return. Over time, the exchange rate of these cTokens to the underlying asset increases, which means you can redeem them for more of the underlying asset than you initially put in — this is how the interest is distributed.
On the flip side, borrowers can take a secured loan from any Compound pool by depositing collateral. The maximum loan-to-value (LTV) ratio varies based on the collateral asset, but currently ranges from 50 to 75%. The interest rate paid varies by borrowed asset and borrowers can face automatic liquidation if their collateral falls below a specific maintenance threshold.
Since the launch of the Compound mainnet in September 2018, the platform has skyrocketed in popularity, and recently passed more than $1.2 Billion in total locked value.
According to Compound, the majority of cryptocurrencies sit idle on exchange platforms, doing nothing for their holders. Compound looks to change this with its open lending platform, which allows anybody who deposits supported Ethereum tokens to easily earn interest on their balance or take out a secured loan — all in a completely trustless way.
Compound’s community governance sets it apart from other similar protocols. Holders of the platform’s native governance token — COMP — can propose changes to the protocol, debate and vote whether to implement changes suggested by others — without any involvement from the Compound team. This can include choosing which cryptocurrencies to add support for, adjusting collateralization factors, and making changes to how COMP tokens are distributed.
These COMP tokens can be bought from third-party exchanges or can be earned by interacting with the Compound protocol, such as by depositing assets or taking out a loan.
Everything on Compound is handled automatically by smart contracts, which act to mint cTokens after Ethereum and ERC20 assets are deposited, and allow Compound users to redeem their stake using their cTokens.
The protocol enforces a collateralization factor for all assets supported by the platform, ensuring each pool is overcollateralized at all times. If the collateral falls below the minimum maintenance level, it will be sold to liquidators at a 5% discount, paying down some of the loan and returning the remainder to an acceptable collateralization factor.
This arrangement helps to ensure borrowers maintain their collateral levels, provides a safety net for lenders, and creates an earning opportunity for liquidators.
Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, both of whom previously worked in high-profile roles at Postmates — an online food delivery service. The two continue to hold executive positions at Compound Labs, Inc — the software development firm behind the Compound protocol, with Leshner currently serving as CEO, while Hayes is the CTO.
Though both founders have experience founding successful companies, Robert Leshner, in particular, has been particularly active in helping to grow the blockchain space, and has publicly invested in popular crypto platforms including Argent Wallet, Opyn, and Blockfolio.
The Compound team now comprises over a dozen individuals — almost half of which work as engineers.
Like many digital assets, only a fixed number of COMP tokens will ever come into existence. The total supply is capped at 10 million COMP and as of writing, less than 67% are in circulation (~6.7 million).
Out of these 10 million tokens, just over 4.2 million tokens will be distributed to Compound users over a 4-year period. The second biggest allotment (almost 2.4 million COMP) goes to the Compound Labs, Inc shareholders, whereas 2.2 million tokens will be distributed to the Compound founders and current team with a 4 year vesting schedule.
Finally, 775,000 COMP are reserved for community governance incentives and the remaining 332,000 tokens will be allocated to future team members.
The exact rate of COMP emission is subject to change over time, as voters are able to increase or reduce the emission rate by passing a proposal through community governance.
The current CoinMarketCap ranking is #90, with a live market cap of $1,021,434,119 USD. It has a circulating supply of 6,686,099 COMP coins and a max. supply of 10,000,000 COMP coins.
We have analyzed the Market Capitalization of this Asset:
Technical Analysis:
Looking at the current Price Levels, we can easily notice that the Price is Reneging below the 78.6% Fibonacci Level, and had fallen to the lower levels such as 85% and even 90%. these levels can be counted as the Undervalue or discounted Levels.
There exist Bullish Divergence of Price Value and MACD , which the sign of bearish trend reversal and start of the new Bullish trend which may lead to the new Economical Cycle.
There are Total of 3 Targets defined by the Average Confluences of the Fibonacci Expansion and Fibonacci Trend Base Extension. these confluences Points can even be counted as the Major Pivot Points .
The 3 TP gets its confirmation as the Bullish trend Triggers the 2 TP followed by some Price correction and Reaccumulation. on its Up Formation rally.
Currently the Price Value is at 85% Retracement level from its ATH; it means that, it has broken the 85% Retracement as the Resistance level and had rechecked it backed and it has been Proved to be the support area .
The Fibonacci Tools have been Drawn From 0$ to the ATH, so the Specified Levels are well Defined and Proved.
The Asset is at the Accumulation Level Currently, which means soon the smart many will Flow in it and the Price Value will get Pump and Appreciates.
Probably we may not again see this 90%, 85% Retracement Level or bellow in the current cycle.
Our Past Analysis:
Initial Acquisition:
Compound is a DeFi lending protocol that allows users to earn interest on their cryptocurrencies by depositing them into one of several pools supported by the platform.
When a user deposits tokens to a Compound pool, they receive cTokens in return. These cTokens represent the individual’s stake in the pool and can be used to redeem the underlying cryptocurrency initially deposited into the pool at any time. For example, by depositing ETH into a pool, you will receive cETH in return. Over time, the exchange rate of these cTokens to the underlying asset increases, which means you can redeem them for more of the underlying asset than you initially put in — this is how the interest is distributed.
On the flip side, borrowers can take a secured loan from any Compound pool by depositing collateral. The maximum loan-to-value (LTV) ratio varies based on the collateral asset, but currently ranges from 50 to 75%. The interest rate paid varies by borrowed asset and borrowers can face automatic liquidation if their collateral falls below a specific maintenance threshold.
Since the launch of the Compound mainnet in September 2018, the platform has skyrocketed in popularity, and recently passed more than $1.2 Billion in total locked value.
According to Compound, the majority of cryptocurrencies sit idle on exchange platforms, doing nothing for their holders. Compound looks to change this with its open lending platform, which allows anybody who deposits supported Ethereum tokens to easily earn interest on their balance or take out a secured loan — all in a completely trustless way.
Compound’s community governance sets it apart from other similar protocols. Holders of the platform’s native governance token — COMP — can propose changes to the protocol, debate and vote whether to implement changes suggested by others — without any involvement from the Compound team. This can include choosing which cryptocurrencies to add support for, adjusting collateralization factors, and making changes to how COMP tokens are distributed.
These COMP tokens can be bought from third-party exchanges or can be earned by interacting with the Compound protocol, such as by depositing assets or taking out a loan.
Everything on Compound is handled automatically by smart contracts, which act to mint cTokens after Ethereum and ERC20 assets are deposited, and allow Compound users to redeem their stake using their cTokens.
The protocol enforces a collateralization factor for all assets supported by the platform, ensuring each pool is overcollateralized at all times. If the collateral falls below the minimum maintenance level, it will be sold to liquidators at a 5% discount, paying down some of the loan and returning the remainder to an acceptable collateralization factor.
This arrangement helps to ensure borrowers maintain their collateral levels, provides a safety net for lenders, and creates an earning opportunity for liquidators.
Compound was founded in 2017 by Robert Leshner and Geoffrey Hayes, both of whom previously worked in high-profile roles at Postmates — an online food delivery service. The two continue to hold executive positions at Compound Labs, Inc — the software development firm behind the Compound protocol, with Leshner currently serving as CEO, while Hayes is the CTO.
Though both founders have experience founding successful companies, Robert Leshner, in particular, has been particularly active in helping to grow the blockchain space, and has publicly invested in popular crypto platforms including Argent Wallet, Opyn, and Blockfolio.
The Compound team now comprises over a dozen individuals — almost half of which work as engineers.
Like many digital assets, only a fixed number of COMP tokens will ever come into existence. The total supply is capped at 10 million COMP and as of writing, less than 67% are in circulation (~6.7 million).
Out of these 10 million tokens, just over 4.2 million tokens will be distributed to Compound users over a 4-year period. The second biggest allotment (almost 2.4 million COMP) goes to the Compound Labs, Inc shareholders, whereas 2.2 million tokens will be distributed to the Compound founders and current team with a 4 year vesting schedule.
Finally, 775,000 COMP are reserved for community governance incentives and the remaining 332,000 tokens will be allocated to future team members.
The exact rate of COMP emission is subject to change over time, as voters are able to increase or reduce the emission rate by passing a proposal through community governance.
The current CoinMarketCap ranking is #90, with a live market cap of $1,021,434,119 USD. It has a circulating supply of 6,686,099 COMP coins and a max. supply of 10,000,000 COMP coins.
We have analyzed the Market Capitalization of this Asset:
Technical Analysis:
Looking at the current Price Levels, we can easily notice that the Price is Reneging below the 78.6% Fibonacci Level, and had fallen to the lower levels such as 85% and even 90%. these levels can be counted as the Undervalue or discounted Levels.
There exist Bullish Divergence of Price Value and MACD , which the sign of bearish trend reversal and start of the new Bullish trend which may lead to the new Economical Cycle.
There are Total of 3 Targets defined by the Average Confluences of the Fibonacci Expansion and Fibonacci Trend Base Extension. these confluences Points can even be counted as the Major Pivot Points .
The 3 TP gets its confirmation as the Bullish trend Triggers the 2 TP followed by some Price correction and Reaccumulation. on its Up Formation rally.
Currently the Price Value is at 85% Retracement level from its ATH; it means that, it has broken the 85% Retracement as the Resistance level and had rechecked it backed and it has been Proved to be the support area .
The Fibonacci Tools have been Drawn From 0$ to the ATH, so the Specified Levels are well Defined and Proved.
The Asset is at the Accumulation Level Currently, which means soon the smart many will Flow in it and the Price Value will get Pump and Appreciates.
Probably we may not again see this 90%, 85% Retracement Level or bellow in the current cycle.
Our Past Analysis:
Initial Acquisition:
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