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?

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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.

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