Hey Guys..!!
Meet again with me Wahyu Nahrul
We have entered the 7th week of Steemit Crypto Academy, for the first homework of this week, I will complete the homework given by professor @gbenga who gave an assignment explaining a project/protocol in Decentralized Finance.

I will take a project that is engaged in lending tokens called Compound.

What Is Compound?

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Compound is a project in the Decentralized Finance protocol that is engaged in lending. The idea for the Compound system came from an expert in economics named Robert Leshner who is also the founder and CEO of the Compound platform.

All users who are members of Compound can be the borrower or the lender, and this allows everyone to be creative with what they have, because if we look at a conventional lending process like a bank, the only party that becomes the lender is the bank, while the party others may not be borrowers. Compound changed the system and made everyone free to carry out the borrowing process in the protocol.

If we borrow at Compound, then we will enter ETH as collateral for our loan, and, uniquely, we will get additional interest from each guarantee we provide.

And what's even greater, because Compound is included in DeFi, every transaction that runs will be recorded transparently, so that all users can see every transaction that has been carried out.

How Compound Works

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If we look at the current conventional banking system such as banks, when we save in our savings accounts, then later we will get interest from our savings. However, the funds in these savings cannot be withdrawn and must be deposited with the bank if we want to get bank interest.

The presence of Compound in the financial world has greatly changed people's perspectives. Compound offers a loan system where lenders and borrowers are required to lock their crypto assets into the Compound protocol. Later, borrowers and lenders will get interest rates. The interest rates will be determined by the supply and demand of each crypto asset.

This is not much different from the conventional bank we talked about earlier. However, Compound has a very unique advantage, namely that borrowers and lenders can withdraw their crypto assets that are locked in the protocol at any time after the loan is paid off.

This can happen because Compound Finance has succeeded in developing ideas in the world of Decentralized Finance (DeFi) by creating a protocol or smart contract system that can later be openly accessed which is built on the Ethereum network.

Current State Of Compound

Based on data published by defipulse.com, then we can see that for now, Compound is the number 2 Top of all projects in DeFI. with a total locked loan at $5.83B, followed by Aave at number 2 for $ 4.85B and Maker in position 1 with a total locked loan at $ 6.36B.

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If you look at the graph of Compound from the beginning of its appearance in 2018 until now, we can see that Compound has experienced a very significant increase in the number of loans locked in it.

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Initially, in 2018, only the locked loan amount was only $2.942M.

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The largest amount of loans locked at Compound ever reached was in March which reached the figure of $6.947B.

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The assets locked on the compound are not only USD but in the form of BTC as much as 107.8k BTC and ETH as much as 3.5M ETH.

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How to Use Compound

In order to you can use Compound to make loans, the first thing you do is visit the official website of Compound, which is here: https://compound.finance/

After that click on the "App" button in the upper right corner.

Then you connect the wallet that you created earlier. Here I give an example of connecting my MetaMask wallet with Compound. If you want to create a MetaMask wallet too, you can see the steps in my article here.

Click the "Next" button so that your MetaMask wallet can connect with Compound.

And done !!
You have successfully connected your wallet with Compound.

If you want to borrow from Compound, then all you have to do is choose what token you want to borrow from the "Borrow Market" on the right.

After that, you choose what token you want to borrow. For example, here we want to borrow a DAI token. Then all you have to do is click on the DAI token icon.

After that, you just need to enter the amount of DAI you want to borrow and it's done (here I don't have a balance in my wallet, so I can't practice it directly).

Last Word

That's my explanation about Compound. From the explanation earlier, I concluded that Compound comes with solutions to financial problems that we often encounter today, and Compound itself is very popular with players in Decentralized Finance. For those of you who are interested in Compound, I highly recommend that you use it, but you also understand well what Compound lacks before using it.

I apologize if there are still many mistakes that you can get when reading my explanation earlier, I would be very grateful if you told me in the comments column below.

Thank you for reading my blog, hope it will be useful for all of you. 😁

CC:

@gbenga
@steemitblog
@steemcurator01
@steemcurator02