Compound is an algorithm-based automated interest rate system on the Ether blockchain. At the time of this writing, Compound is the world''s largest decentralized financial protocol with over $500 million in locked digital assets and $900 million in assets available for use. Compound creates an independent lending marketplace that is free from any government regulation. Interest rates are compounded over time (Ether out of the block) and the process operates without any intermediaries. Compound operates on the basis of over-collateralization by the user, where the borrower can provide assets to earn interest and the lender can pledge other assets to withdraw the assets provided by the borrower. For example, a user can deposit USDC for interest and use the USDC collateral to borrow ETH and pay the interest rate. The lending rate is adjusted in real time according to market supply and demand. When the supply side provides more assets, the interest rate will be adjusted downward, while when the demand side needs more assets, the interest rate will be adjusted upward. Digital assets in the protocol (e.g. REP) are automatically replaced with cTokens (e.g. cREP), whose value grows slowly as the interest rate compounds. COMP tokens run on the Ether blockchain and are used for the governance of the Compound protocol. COMP tokens support the protocol''s proxy voting process, where token holders and proxies can discuss, initiate, and vote on any governance issue. For example, users can propose to include new digital assets, or change the asset collateral rati