Today's Hard|Forum Post
Today's Hard|Forum Post

Thursday May 17, 2018

Earn Interest on Your Cryptocurrency

Compound is the first-ever investment that Coinbase has made through their venture fund and they are hoping it's a product that cryptocurrency users will be interested in. Compound is based on the Ethereum blockchain and it's going to allow very short term lending of cryptocurrency. However, Compound does take a ten percent cut of whatever lenders earn. Also, folks that hate crypto can hedge their bets and short crypto with Compound. Interesting idea they have here. I wonder what the SEC is going to say once they look into it?

News Image

To set the interest rate, Compound acts kind of like the Fed. It analyzes supply and demand for a particular crypto asset to set a fluctuating interest rate that adjusts as market conditions change. You’ll earn that on what you lend constantly, and can pull out your assets at any time with just a 15-second lag. You’ll pay that rate when you borrow.