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Compound Finance Review: DeFi Unleashed!



๐Ÿ”ฅ TOP Crypto TIPS In My Weekly E-newsletter ๐Ÿ‘‰
๐Ÿ“ฒ Be part of The Coin Bureau Insider Channel ๐Ÿ‘‰
๐Ÿ“บ Watch my devoted video on Dai ๐Ÿ‘‰
BTC Tipjar ๐Ÿ™๐Ÿป: 35YDYtYAB999JxiXQXewzLvMGX4ki2d3WL

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โฐ Time Stamps โฐ

0:59 Intro
5:07 What Is Compound Finance?
9:39 What Are cTokens?
15:19 Why DeFi May Set off Insane Capital flows Into Crypto?
17:23 Conclusion

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โ›“๏ธ ๐Ÿ”— Useful Hyperlinks & Sources ๐Ÿ”— โ›“๏ธ

โ–บ Get began on Compound Finance:
โ–บ Use Metamask to connect with Compound:
โ–บ Preserve your cDai secure while utilizing Compound with Ledger:
โ–บ Examine DeFi rates of interest:
โ–บ Try the Coinmarketcap of DeFi:
โ–บ The Compound contract on Etherscan:

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๐Ÿ“ Easy Overview ๐Ÿ“

Are you one of many billions of individuals on the market getting a uncooked curiosity deal out of your financial institution? Nicely, there may be now one other method to get that candy, candy curiosity you deserve in defi. On this video, I let you know all in regards to the Compound Finance lending platform and easy methods to begin incomes 8% curiosity as we speak.

โ“ What Is Compound โ“

In brief, Compound Finance merely matches those that need to borrow crypto with people who need to provide crypto to earn curiosity. The platform permits customers to lend or borrow a plethora of cryptocurrencies together with Ethereum, Dai, USD Coin, Augur, SAI, Wrapped BTC, BAT and 0x. It is best to know that the secure coin Dai makes up the lions share of the lending and borrowing on Compound.

๐Ÿ’ฐ What Are cTokens? ๐Ÿ’ฐ

Need to compound that superior rate of interest? Donโ€™t be so hasty. Itโ€™s in all probability a good suggestion to know whatโ€™s occurring behind the scenes together with your cash.

Should you provide Dai to earn curiosity on the platform, you’ll get one thing often called cDai despatched again into your Ethereum pockets. Itโ€™s barely complicated as you get a seemingly random quantity cDai. So, whatโ€™s occurring with that?

The very first thing to know is that cDAI acts as a redemption token to redeem precise DAI. The identical is true of any asset listed on Compound Finance. Any crypto asset you provide to earn curiosity on, youโ€™ll get again a cToken for that asset.

cTokens are designed to extend barely after each Ethereum block generated. That is how curiosity is generated on the platform.

๐Ÿ How To Get Began Incomes Curiosity On Compound Finance? ๐Ÿ

โ–บ Be sure to have your Dai on a Coinbase pockets, Ledger or Metamask.
โ–บ Head over to Compound.Finance and click on โ€˜Marketsโ€™ on the high of the web page.
โ–บ Click on the โ€˜Appโ€™ button and join your pockets.
โ–บ Choose the pockets you need to entry on Compound.
โ–บ Select the asset you need to provide to earn curiosity.
โ–บ If you’re supplying Dai allow it in your gadget in case you are utilizing a Ledger and settle for the Compound contracts.
โ–บ Enter the quantity of Dai you need to earn curiosity on and click on โ€˜Provideโ€™.

It truly is that simple.

๐Ÿ”ฎ Why DeFi Lending Platforms May Set off Insane Capital flows Into Crypto? ๐Ÿ”ฎ

Proper now, banks are providing really horrible rates of interest. Lock up your cash for 3 years at HSBC within the UK and you may count on to get solely 2% curiosity. The purpose is that there are in all probability tons of of tens of millions of individuals around the globe sitting on money deposits in banks incomes virtually no curiosity in any way.

As well as, different belongings like equities within the inventory market look overextended. Perhaps some folks will start to suppose the danger to reward profile is simply not there anymore in these belongings? There are over $85 trillion {dollars} price of worth locked up in international inventory markets.

The bond markets have over $2.4 trillion price of worth saved in them. Within the UK, a authorities two-year bond pays simply 0.5% a yr. The purpose is there may be some huge cash sitting in banks, bonds and different belongings that would get considerably higher returns in defi. The important thing query is whether or not increasingly folks will begin seeing alternatives like Compound as a stable various and reallocate their capital to defi.

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๐Ÿ“œ Disclaimer ๐Ÿ“œ

The knowledge contained herein is for informational functions solely. Nothing herein shall be construed to be monetary authorized or tax recommendation. The content material of this video is solely the opinions of the speaker who just isn’t a licensed monetary advisor or registered funding advisor. Buying and selling Foreign exchange, cryptocurrencies and CFDs poses appreciable threat of loss. The speaker doesn’t assure any explicit consequence.

#defi #Dai #ethereum #compoundfinance #crypto #erc20 #evaluate

Source: Coin Bureau

40 Responses

  1. GUY & CB: CAN YOU PLEASE TELL ME / US HOW 8% INTEREST IS POSSIBLE? I DON'T UNDERSTAND HOW ANY DEFI CAN PROVIDE INTEREST, MUCH LESS RELIABLE RATES. IS IT THAT THE LOAN INTEREST RATES ARE HIGHER?

    BTW JUST USING ALL CAPS TO INCREASE THE ODDS OF MY QUESTION BEING SEEN AND ANSWERED. THANKS!

  2. compound eth is a rip off. I lent $100 to compound, before the bull run. now I cant withdraw it because I need to pay the miners $90 in gas fees. most likely I will be able to withdraw it when price goes back to $100. bummer

  3. Awesome video, thank you. Can someone list the risks involved in depositing a stable coon into such platform? More specifically, could a stable coin drop in value in e.g. Bear market?

    Usually higher reward means higher risk. One of those risks is some bug in the smart contract (someone could empty the liquidity pool from the smart contract). Any others?

    Thanks!

  4. Great video.
    So, you are giving up a stable coin for some c-coin out of thin air in the hope it's still worth something over a longer timeframe? Yeah, but no… I'm not convinced.

    Not sure it's fair, but Bernie Madoff comes to mind, his system worked all too well while the influx of fresh money was there, until it didn't. Comments appreciated why this is different?

  5. Great video but ETH fees are so high now (Mar '21) that none of this is realistic for the average person. I wanted to try the example of putting 17 DAI (i.e. $17.00) with Compount Finance but the gas fees are somewhere around $100.00 … So that would make fees 6x the investment amount. Bit like negative interest rates, completely idiotic.

  6. There is a risk. Unlike Marker, Compound does accept USD Tether as colateral.
    That means that this protocol are giving away good assets and keeping a bunch of Tether as colateral.

    The problem: Tether may be the next target for SEC. We are hearing about Tether to be a Scam long way behind us.

    Watch out fellows. Tether is going to be the next Mt. Gox.

    Government is only waiting for this to inflate, and hit billions. So they can attack and tell regular people how dangerous is DeFI and how good is US Treasures.

  7. As someone new to crypto I initially wasnโ€™t interested in this side as seemed too complicated but in fairness the free drops from apps like Coinbase really do work for getting newcomers to play around and see how it works.

  8. I trust you to know is there any way I can buy nexo tokens with compound Ethereum from coinbase wallet or any way I can transfer that compounded ether anywhere or anyhow without paying insane miner fee

  9. Bit of eth for gas? Does that mean that you are spending your ethereun? Wouldn't it be better to keep the eth for the price increase that is virtually inevitable?

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