Cryptocurrency Q&A
How does compound make money?
How does compound make money?
Nicola
Fri Jun 28 2024
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6 answers
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Could you elaborate on how Compound, a decentralized lending protocol, generates revenue? I'm curious about the underlying mechanisms that allow it to profit from its operations. Specifically, how does Compound facilitate lending and borrowing of cryptocurrencies while also earning a return for its stakeholders? What are the key factors that contribute to its profitability, and how does it ensure that the system remains secure and efficient? Additionally, how does Compound distribute its profits among its users and other stakeholders? I'd appreciate a concise yet comprehensive explanation of how Compound makes money in the cryptocurrency and finance space.
6 answers
Giuseppe
Sun Jun 30 2024
As lenders deposit their cryptocurrencies, they are essentially providing liquidity to the lending market.
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EclipseSeeker
Sun Jun 30 2024
Compound offers a platform that facilitates cryptocurrency lending.
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NebulaNavigator
Sun Jun 30 2024
Users have the option to deposit their cryptocurrency holdings into designated lending pools.
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Giulia
Sun Jun 30 2024
These pools are accessible to borrowers seeking to obtain funds in the form of loans.
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CryptoPioneer
Sat Jun 29 2024
In return for their contribution, lenders earn interest on the assets they have deposited.
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