Compound operates as a decentralized finance (DeFi) protocol on the Ethereum blockchain, providing a platform for users to earn interest by lending their cryptocurrencies. The protocol generates cTokens in exchange for deposits, ensuring that the deposited assets can be freely traded but only used within the Compound system. An essential element of Compound is the COMP coin, which incentivizes user engagement. Borrowers have the opportunity to take loans against collateral; however, risks of liquidation exist if the borrowed assets surpass the collateral's value.

The Concept of Compound (COMP)

Compound functions as a DeFi protocol within the Ethereum ecosystem, aiming to create a decentralized money market without traditional financial intermediaries. Through Compound, users can both lend and borrow various cryptocurrencies.

In practical terms, Compound enables users to deposit their digital assets into lending pools, making them available for borrowers. Lenders earn interest on these deposits and receive cTokens, like cETH, cBAT, or cDAI, representing their contributions. While these cTokens can be traded, they are only compatible with the initial cryptocurrency deposited. The entire process functions automatically via the Compound codebase, allowing users to withdraw their deposits at any moment.

To enhance user involvement, Compound introduces its native cryptocurrency, COMP coin. Users acquire COMP coins by participating in the Compound ecosystem, whether through borrowing, repaying, or withdrawing assets. This rewarding strategy has been successful in attracting users and has served as a model for other DeFi projects. Notably, by 2020, over $500 million in assets were locked within the Compound protocol.

Compound establishes connections between lenders and borrowers through smart contracts on the Ethereum network. The platform essentially caters to two main user categories: lenders, who can deposit assets to earn interest, and borrowers, who can provide collateral to access loans in other supported cryptocurrencies, up to a specific percentage of the collateral's value.

Lenders receive COMP coins based on the amount of cTokens in their possession, and the interest rates are contingent on the current supply of the asset. Generally, a market with higher liquidity will offer lower interest rates. This mechanism grants users lending assets the ability to borrow any supported cryptocurrency within Compound up to the collateral's value.

A critical factor to consider when borrowing on Compound is the risk of liquidation. Should the value of the borrowed assets exceed the collateral's value, liquidation may occur, ensuring the protocol's integrity and fostering confidence among lenders.

Purchasing Compound (COMP) with TRY

For Turkish investors interested in acquiring Compound (COMP), Binance TR serves as a convenient cryptocurrency exchange. Binance TR simplifies the account creation process and provides access to over 100 cryptocurrencies, including COMP. To buy Compound (COMP) with TRY via Binance TR, follow these steps:

Creating an Account on Binance TR

Opening an account on Binance TR is a straightforward process. Visit trbinance.com and proceed with the account creation steps starting with the entry of basic personal information such as email, phone number, name, surname, date of birth, nationality, and T.C. identity number.

After accurately entering the required information, an email/SMS verification will be conducted for validation. The subsequent step involves identity verification (KYC) to enhance security measures.

Verifying an Account on Binance TR

Identity verification on Binance TR is a crucial security measure that must be completed before engaging in cryptocurrency trading. This verification ensures the safety of both the user and the exchange. The verification process can be completed via the Binance TR website or through mobile verification.

Depositing TL (Turkish Lira) on Binance TR

Turkish users can easily deposit TL into their Binance TR accounts through various banks. Deposits up to 50,000 TL can be made 24/7 with FAST from selected banks, while deposits exceeding 50,000 TL require processing during EFT hours.

To initiate a TL deposit, visit trbinance.com, access the “Wallet” option, and select “Deposit” to begin the process. Choose your preferred bank or select the “Other Banks” option if your bank is not listed. Proceed with the transfer process using the provided bank information.

Buying COMP Coin with TL on Binance TR

After successfully depositing funds, navigate to the “Buy-Sell” section on the Binance TR website to purchase COMP coin with TL. Search for “COMP” in the search bar and select the COMP/TRY pairing to access the COMP trading page. Enter the desired purchase price and quantity, then execute the purchase by clicking the “Buy COMP” button.

Understanding Binance TR

Binance TR, established in 2020, functions as a cryptocurrency exchange specifically tailored for Turkish investors. The platform leverages Binance’s technology and infrastructure to provide seamless fiat-to-crypto and crypto-to-crypto trading services. Turkish users benefit from robust security measures, liquidity, and core functionalities, thereby accessing a wide range of cryptocurrencies via Binance TR.

By offering market-leading spot trading liquidity, advanced security features, custody solutions, and risk controls, Binance TR ensures a secure and efficient trading experience for cryptocurrency investors in Turkey.