Review on Compound Dai by Crypto Currency 27
COMPOUND DAI
Hello. Like most DeFi protocols, Compound is an open access smart contracts system built on Ethereum. The Compound focuses on borrowers getting loans by locking their crypto assets into the protocol and lenders making loans. Interest rates paid and received by borrowers and lenders are determined by the supply and demand of each crypto asset. Interest rates are created in each block produced. Loans are repayable and locked assets can be withdrawn at any time. Compound allows its users to withdraw loans in exchange for sent cryptocurrencies. Likewise, it allows those who want to lend to earn interest income. Thus, it brings together those who want to get credit and those who want to give credit.
The cTokens built on this principle are Compound's local tokens.
Pros
- trading in the ethereum network
Cons
- low value
