Compound operates as a decentralized finance (DeFi) protocol on the Ethereum network, allowing users to earn interest by depositing their cryptocurrencies into lending pools. Users receive cTokens in exchange for their deposits, facilitating transactions and withdrawals. To foster active participation, the protocol rewards users with COMP coins. Borrowers can take out loans by providing collateral, but if the borrowed assets surpass the collateral’s value, liquidation risk arises. The article elucidates two primary queries: What is Compound (COMP), and how can one purchase Compound (COMP) using Turkish Lira (TRY)?
What is Compound (COMP)?
Compound is a decentralized finance protocol on the Ethereum blockchain designed to operate a money market without traditional financial intermediaries like banks. It facilitates the lending and borrowing of multiple cryptocurrencies.
In essence, Compound allows users to deposit their cryptocurrencies into lending pools, earning interest on their assets. Depositors receive cTokens as a representation of their deposit, which can be transferred or traded but are specific to the initially deposited cryptocurrency. The system is automated to enable lenders to withdraw their deposits anytime.
To drive engagement, Compound issues its native cryptocurrency, COMP coin. Users are rewarded with COMP coins through various interactions with the Compound market, such as borrowing, withdrawing, or repaying assets. This model has successfully attracted users and inspired other DeFi projects, with over $500 million in assets locked in the protocol by 2020.
The platform connects lenders and borrowers using smart contracts on Ethereum. Lenders send their cryptocurrencies to Compound’s Ethereum address to earn interest, while borrowers provide collateral to borrow other supported cryptocurrencies up to a certain percentage of the collateral’s value.
Lenders earn COMP coins based on the amount of cTokens they hold, with interest rates varying according to the asset’s current supply. More liquidity results in lower interest rates, allowing users to borrow other supported cryptocurrencies up to the provided collateral amount.
How to Buy Compound (COMP) with TRY?
For Turkish investors interested in purchasing Compound (COMP), Binance TR is the recommended cryptocurrency exchange. Binance TR allows quick account creation and offers numerous cryptocurrencies, including COMP. Here’s a step-by-step guide to buying Compound (COMP) with TRY on Binance TR.
Account Creation on Binance TR
Creating an account on Binance TR is straightforward. Visit trbinance.com and follow the “Create Account” instructions, providing the required information, including email, phone number, name, and T.C. identity number. Complete email/SMS verification, followed by identity verification (KYC).
Account Verification on Binance TR
Account verification on Binance TR is a security procedure essential for trading and account creation. This can be completed via phone or Binance TR’s website. Users need to scan a QR code with their phone for verification, upload photos of their ID or driver’s license, and complete a facial scan. Verification ensures user and platform security.
Depositing TL on Binance TR
Depositing Turkish Lira (TL) into a Binance TR account can be done via all banks. Follow these steps to deposit money:
- Go to trbinance.com and select “Wallet” then “Deposit” from the menu.
- Choose your preferred bank to see account details for transferring funds.
- Transfer, EFT, or FAST the desired amount to the provided account details.
- Funds will reflect in your Binance TR account wallet automatically.
Buying COMP Coin with TL
After depositing funds, proceed to buy COMP coin with TL:
- Select “Buy-Sell” from the top menu on Binance TR.
- Search for “COMP” and select COMP/TRY from the results.
- Enter the amount and price for COMP and click “Buy COMP” to complete the purchase.
What is Binance TR?
Binance TR, launched in 2020, is Binance’s platform tailored for Turkish cryptocurrency investors. It utilizes Binance’s technology, security, and liquidity to offer fiat-to-crypto and crypto-to-crypto trading services. Users can deposit and withdraw Turkish Lira and trade various cryptocurrencies with TRY pairs.
Supported by Binance’s core functionalities, Binance TR provides market-leading liquidity, a robust matching engine, advanced security protocols, custody solutions, and risk controls.