Popular bitcoin exchange OKEx has announced the listing of the COMP token, the governance token of the algorithmic decentralized finance protocol Compound.
According to an announcement OKEx published, spot trading of COMP against Tether’s USDt stablecoin and bitcoin opened up today, June 29, at 6 am UTC. COMP deposits have been available since 5 am, with withdrawals being opened three hours later.
Compound, for those out of the loop, is a decentralized finance protocol launched in 2017 by Robert Leshner and Geoff Hayes. It lets users borrow and lend cryptocurrencies in peer-to-peer transactions. Those who borrow need collateral to do so and must repay the funds with interest, while those who lend receive interest on their holdings.
Rates on Compound are determined by the market and change over time along with the amounts being lent and borrowed. Since its launch, Compound has grown to become a leading DeFi protocol, with over $1 billion worth of assets locked in it.
There is now $1 Billion supplied to the Compound protocol.
— 🤖 Leshner (@rleshner) June 27, 2020
Compound’s COMP token was launched earlier this month. It’s a governance token, meaning token holders have the right to vote on important decisions that affect the Compound protocol, ranging from technical upgrades to decisions on adding new cryptoassets.
The tokens are distributed to users who interact with the protocol, which incentivized some to borrow and lend on Compound in an attempt to gain more COMP tokens. CryptoCompare data shows these are trading above $230, after falling from a $330 all-time high.
Commenting on the listing Jay Hao, OKEx’s CEO, noted Compound has become the largest player in the DeFi space “thanks to its continued innovation and development,” and is a “shining example of how far development has come in this space. Hao added:
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.
In its announcement, OKEx reminded users it prides itself on “offering high-quality projects that bring liquidity to the exchange.” It reiterated that behind every listing is an “exhaustive process of due diligence ensuring that all possible measures are taken to assure projects’ legal qualifications, business models, strength of community and market potential.”
Since its launch, the COMP token has been listed on numerous cryptoassets trading platform as its popularity grows. Its market cap is now above the $500 million mark.
Featured image via Pixabay.