Compound announced yesterday that they have started distributing COMP tokens to all currently active protocol users.
The governance token was revealed in February, and a recent vote to distribute COMP to users was passed with a huge majority.
Argent has natively integrated Compound, so you can easily earn interest by lending through them. We don't currently support borrowing, however we'll soon be adding Maker Vaults to allow that.
All this means you will now passively earn COMP (alongside the usual interest) just by supplying your assets to Compound!
Get started easily by downloading or opening Argent here.
What is COMP?
COMP is a 'governance token', meaning it lets you have a say in how the Compound platform is run.
Although Compound states that the token isn’t a fundraising device or investment opportunity, it is currently trading at around $70 USD on Uniswap.
Anyone who has at least 1% of COMP tokens can propose governance actions, such as adding support for a new asset. You could even vote to replace the current governance model for something different.
Importantly, these actions are actually executable code on the protocol - rather than suggestions for a team or foundation to implement (read more).
How do you earn COMP?
Earning COMP is easy. You automatically accumulate COMP through Argent by lending assets to Compound's protocol.
Here's a guide on how to get started with Compound in under a minute:
The amount of COMP you will earn each day is proportional to how much is invested by you and everyone else using the protocol. It is earned in real-time.
Once you have earned over 0.001 COMP, it will appear in your wallet the next time you make a transaction with Compound (such as lending, or withdrawing your assets).
2,880 COMP are to be distributed each day across all markets (USDT, DAI, USDC, WBTC, BAT, ZRX, REP, ETH) proportional to the interest being accrued.
The distribution schedule is outlined here.
You can also buy COMP through Uniswap V2, using WalletConnect. Just click "Connect to a wallet", select WalletConnect and scan the QR code.
Transferring COMP
Sending COMP to and from Argent
If you have COMP in another wallet, or want to send it to someone with Argent, sending it is as simple as sending any other token.
Also, if you have COMP in Argent already and want to send it, you can treat it as you would any token (transfers will be free through Argent, as usual).
Sending cTokens
Sending a cToken (the token that represents assets held in Compound) from another wallet will not automatically send the COMP with it.
Although you can receive cTokens in Argent, you cannot currently send them.
Claiming COMP
If you are using another wallet and want to claim COMP below the threshold of 0.001, you can use this interface.
At time of writing this is not compatible with Argent as it has no WalletConnect support, however as stated earlier you will automatically get your COMP tokens once you are above the threshold of 0.001 and make another transaction with Compound.
To get started with Argent, download here.
Further reading:
- Check out this video from Bankless which gives some more background information
- Compound Finance Medium on Compound Governance