COMP governance token is the native crypto of Compound, a DeFi protocol that allows its users to earn interest on deposits or lend cryptocurrencies. Lending and borrowing on Compound are managed through a decentralized peer-to-peer blockchain-based protocol.
According to Jay Hao, the CEO of OKEx, Compound has been leading the decentralized finance space. “Thanks to its continued innovation and development, it has now become the largest player in DeFi and a shining example of how far development has come in this space,” he said.
Additionally, COMP USDT Perpetual Swap trading is also slated to go live on the OKEx website and API on July 1, 2020.
COMP governance token to assist the DeFi space
The exchange CEO additionally expressed his enthusiasm with the new initiative stating it would assist the DeFi space.
“We are extremely pleased to be able to help foster the growth of the DeFi ecosystem alongside Compound. It is our belief at OKEx that DeFi will eventually disrupt traditional finance and provide equal opportunities for everyone to access financial services. This, in turn, helps us to realize our vision at OKEx, which is to #FinanceAll,” the statement read.
Also, Compound was recently also listed on Coinbase’s Earn platform, which teaches users all about the asset.
Launched in 2017, Compound was co-founded by Robert Leshner and Geoff Hayes to allow users to borrow, lend and earn interest on cryptocurrency in peer-to-peer transactions through a decentralized protocol.
Since then, Compound has grown to become one of the cornerstones of the DeFi industry and, as of today, Compound is the world’s largest DeFi protocol, with more than $600 million worth of crypto assets locked in it.
Unlike other cryptocurrencies or coins, COMP is a digital token, referred to as a “governance token.” This is because COMP governance token grants its holders the right to vote on important decisions that affect the protocol, from a technical upgrade on the platform to the decision to incorporate a new crypto asset.