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Definition: Compound


A crypto liquidity protocol that runs on Ethereum. In Compound, all crypto of the same type is treated as a single pool. When users deposit crypto, they are awarded cTokens for the funds. With hundreds of millions of dollars locked up in smart contracts, Compound is a leading decentralized finance (DeFi) protocol. COMP is Compound's governance token, which is distributed to users based on their assets, and COMP holders decide the role and future of Compound. See Ethereum, crypto liquidity protocol and DeFi.