Compound is a decentralised protocol built on the Ethereum blockchain. It is designed to manage a traditional money market using blockchain technology. When making a deposit, users are issued cTokens, such as cETH or cDAI, which represent the assets that have been deposited.
These cTokens, which can be transferred or traded freely, can only be redeemed for the initially deposited cryptocurrency. The management of these cTokens is automated, meaning that users can withdraw their deposits at any time. The protocol calculates interest rates using smart contracts, which are based on the dynamics of supply and demand.
Create an eToro account:
Sign up for an eToro account and verify your identity.Deposit funds:
Deposit funds into your eToro account using your preferred payment method.Search and purchase:
Search the Compound (COMP) page and place an order to buy Compound.