Historical retrospective · DeFi
Compound established pooled lending markets on Ethereum
Compound’s early protocol contracts let users supply assets to shared markets and borrow against posted collateral, with rates adjusting algorithmically.
The pool model made lending available through a smart-contract interface that other applications could integrate.
Compound became an influential reference point for on-chain money markets and composable collateral use.
Algorithmic rates and overcollateralization do not remove liquidation risk or guarantee liquidity during stress.
Primary source
This retrospective summarizes the source below in original language. The displayed year refers to the dated event, proposal or specification; it is not the article’s publication date. This is not investment, legal or security advice.