All Compound protocol users are now receiving $COMP – marking the beginning of community governance.
— Compound Labs (@compoundfinance) June 15, 2020
After passing a vote with an overwhelming majority to kick off the distribution, all users supplying and borrowing assets from the money market protocol will be eligible to earn COMP governance tokens. As illustrated in the proposal:
“Every Ethereum block,
0.50 COMP will be distributed across ETH, DAI, USDC, USDT, BAT, REP, WBTC and ZRX markets, proportional to the interest being accrued in the market; as conditions evolve, the allocation between markets is updated by invoking the refreshCompSpeeds function. Within each market, half of the COMP is allocated to suppliers, and the other half to borrowers.”
Now, less than 24 hours after going live, COMP is currently trading on Uniswap.
This means that ~2,880 COMP is set to be distributed per day for the next 4 years. In total, 42% of the total supply will be distributed through the usage of the protocol. In total, the 10M total COMP supply is set to be broken down as follows:
- 24% (2,396,307 COMP) to shareholders of Compound Labs, Inc.
- 22.25% (2,226,037 COMP) to Compound founders & team, subject to 4-year vesting
- 3.72% (372,707 COMP) to future team members.
- 42.3% (4,229,949 COMP) reserved for protocol usage
- 7.75% (775,000 COMP) reserved for future governance participation incentives
- Most importantly, 0 COMP will be sold or retained by Compound Labs, Inc
For more details on the distribution, check out this article. Here are some of the big things worth noting.
Which supported assets earn me the most COMP?
At the time of writing, Tether (USDT) is the asset set to earn the most COMP. To see which asset is earning the most COMP, simply view this chart and find whichever asset is earning the most interest per day.
Seeing as COMP is earned relative to the total amount of interest being accrued, Tether and it’s 7.91% APR make it the asset earning the most interest per day – currently more than 121% greater than the runner up – USDC. Here’s a good illustration of this using the past 30 days as a historical reference.
To see which assets currently offer the highest APR check out our Compound lending rates.
Is COMP transferrable?
Yes – COMP is a standard ERC20 token meaning it can be exchanged between different addresses. You can trade COMP on Uniswap here.
How do I claim COMP?
After COMP has been earned, you will need to claim is from the Compound smart contracts. This can be done through your voting dashboard.
What is the official COMP token address?
The official address for COMP is 0xc00e94cb662c3520282e6f5717214004a7f26888. This can be used to see outgoing distributions and inputted in the “Add Token” section of a wallet like MetaMask to see your holdings.
How do I delegate COMP?
For those looking to delegate their voting power to other parties, head on over to the governance leaderboard. Here you can see different COMP holders, the number of polls they’ve voted on, and their past decisions.
For those who forgot, DeFi Rate aims to be a leading COMP delegate. You can delegate to us using defirate.eth.
Please not that delegation is simply assigning your voting power to someone else. This is drastically different from transferring them your COMP. With delegation, there is no transfer of underlying assets.
Closing Thoughts on COMP
The launch of COMP marks an important transition for DeFi as a whole. With the governance of the leading lending protocol now entirely in the hands of the community, it will be interesting to see if things progress as intended.
Seeing as the core team has been overly enthusiatic about this tranisition, it’s up to us as the DeFi community to ensure their trust was put in good hands.
To stay up on all things Compound, follow them on Twitter or join the conversation on Discord.
Until then, we’ll see you on the COMP farming fields!
Cooper is the Editor of DeFi Rate and an active contributor to leading DeFi media outlets like The Defiant, DeFi Pulse, and Bankless. He works with early-stage teams through Fire Eyes DAO to incubate governance models and grassroots community development. He is an ambassador to Set Protocol and an author of a weekly publication called Token Tuesdays. To stay up with Cooper, follow him on Twitter.