DeFi Lending Protocol Compound to Start Distributing Its COMP Governance Tokens

Francisco Memoria

Decentralized Finance (DeFi) lending protocol Compound is set to start distributing its COMP governance tokens later today, according to an announcement the firm published.

Compound detailed that it completed a testnet trial for the distribution of its COMP tokens, which allowed its community to approve the proposal on June 14. The lending platform will, as a result, distribute a total of 1,116,310.81 COMP tokens to users across several markets, with half of the tokens being supplied to each market going to the borrowers, and half to the suppliers.

The announcement reads:

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.

It adds that whenever an address interacts with a market on Compound, it will receive “all COMP earned in that market, should it exceed a 0.001 COMP threshold.” The tokens are set to start being distributed today, June 15.

The approval of the governance token’s distribution comes as the total number of decentralized finance users keeps on growing, and is expected to soon reach 600,000. Compound is a major decentralized finance protocol, and is already integrated on several wallets and platforms.

San Francisco-based cryptocurrency exchange Coinbase has recently announced it’s exploring the addition of 18 new digital assets to its platforms, one of which is Compound’s COMP token.

Featured image via Unsplash.