I wanted to try ETH sabing and interest. So I added some ETH to see what the interest will be.
So the situation is like this now:
At 09:12 AM i have 4.5687 ETH in Compound.
Will update in few hrs to see the change
Topic: The Compound protocol - setup for beginners + testing of system (Read 167 times)
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What is Compound Protocol?
From the Web: Compound is a money market protocol on the Ethereum blockchain - allowing individuals, institutions, and applications to frictionlessly earn interest on or borrow cryptographic assets without having to negotiate with a counterparty or peer.
In short: Compound is a dapp on ETH, to which you can deposit your crypto, and receive interest for it. Something similar to a bank deposit, just a lot more flexible.
I'm not going to go into detail too much because there is an official whitepaper that explains everything and can be found on THIS LINK .
How to use Compound?
Note: For the purposes of this tutorial, I used a method that was user-friendly enough for me to be able to figure out what to do without instructions. There are several ways to use it (mostly the same way, only different tools). I tested on my cell phone, as it was the most practical for me at that moment
The first step is to install the Coinbase wallet from the Google Play store. Nothing spectacular about this, everyone knows how to do it (Apple store has it as well, just saying).
After the wallet is installed, APP starts and some things are setup. You can importat a wallet or create a new one. Once everything is set up, we have a standard wallet to which crypto is deposited.
Once the crypto arrives, we use a "built-in" dapp explorer that is part of the Coinbase wallet to open Compound.
We'll get a list of commonly used dapps here, and scroll until we find Compound
After the dapp loads, we choose the option to connect the wallet. Once connected, It will show us if we have any of the funds available for deposit.
We click on the currency we want to put in Compound, and choose how much
I don't have a lot of ETH in that wallet right now, because I transferred it all to DAI. And interest on ETH is extremely low. But after the funds are deposited, we have an overview that tells us how much those funds are worth in FIAT and what the interest rate is. In particular, DAI is changing a lot, but some average is 8% per year. 48 hours ago it was 25%.
For now, this is it. Crypto is deposited into Compound, and every now and then the quantity grows as they pay interest every couple of hours.
I'll keep track of how the system behaves, it's promising for now, so we'll see.
On an end note, DYOR and invest only as much as you can afford to lose if something goes wrong.
From the Web: Compound is a money market protocol on the Ethereum blockchain - allowing individuals, institutions, and applications to frictionlessly earn interest on or borrow cryptographic assets without having to negotiate with a counterparty or peer.
In short: Compound is a dapp on ETH, to which you can deposit your crypto, and receive interest for it. Something similar to a bank deposit, just a lot more flexible.
I'm not going to go into detail too much because there is an official whitepaper that explains everything and can be found on THIS LINK .
How to use Compound?
Note: For the purposes of this tutorial, I used a method that was user-friendly enough for me to be able to figure out what to do without instructions. There are several ways to use it (mostly the same way, only different tools). I tested on my cell phone, as it was the most practical for me at that moment
The first step is to install the Coinbase wallet from the Google Play store. Nothing spectacular about this, everyone knows how to do it (Apple store has it as well, just saying).
After the wallet is installed, APP starts and some things are setup. You can importat a wallet or create a new one. Once everything is set up, we have a standard wallet to which crypto is deposited.
Once the crypto arrives, we use a "built-in" dapp explorer that is part of the Coinbase wallet to open Compound.
We'll get a list of commonly used dapps here, and scroll until we find Compound
After the dapp loads, we choose the option to connect the wallet. Once connected, It will show us if we have any of the funds available for deposit.
We click on the currency we want to put in Compound, and choose how much
I don't have a lot of ETH in that wallet right now, because I transferred it all to DAI. And interest on ETH is extremely low. But after the funds are deposited, we have an overview that tells us how much those funds are worth in FIAT and what the interest rate is. In particular, DAI is changing a lot, but some average is 8% per year. 48 hours ago it was 25%.
For now, this is it. Crypto is deposited into Compound, and every now and then the quantity grows as they pay interest every couple of hours.
I'll keep track of how the system behaves, it's promising for now, so we'll see.
On an end note, DYOR and invest only as much as you can afford to lose if something goes wrong.
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