Compound is a decentralized finance (DeFi) protocol operating on Ethereum, allowing users to earn interest by depositing their cryptocurrencies into lending pools. Users receive cTokens in exchange for their deposits, which can be freely transferred but only used for the initially deposited cryptocurrency. To encourage participation, Compound rewards its users with COMP coins. Borrowers can take loans by providing collateral, but if the borrowed asset exceeds the value of the collateral, there is a risk of liquidation. This article answers two key questions: What is Compound (COMP), and how to buy Compound (COMP) with TRY?
What is Compound (COMP)?
Compound is a decentralized finance (DeFi) protocol operating on the Ethereum blockchain. It is designed to incentivize a distributed computer network to operate a traditional money market without the need for financial intermediaries like banks. Compound facilitates the lending and borrowing of multiple cryptocurrencies within its platform.
In simple terms, Compound allows users to deposit their cryptocurrencies into lending pools that borrowers can access later. Lenders earn interest on their deposited assets. When a user deposits cryptocurrency into Compound, they receive a new type of cryptocurrency called cTokens, such as cETH, cBAT, or cDAI, representing their deposit. These cTokens can be freely transferred or traded but can only be used for the initially deposited cryptocurrency. The process is automated by Compound’s code, allowing lenders to withdraw their deposits at any time.
To encourage participation, Compound uses its native cryptocurrency, COMP coin. Users earn COMP coins whenever they interact with the Compound market, whether through borrowing, withdrawing, or repaying assets. This model has successfully attracted users and inspired similar approaches in other DeFi projects. According to DeFi Pulse, over $500 million worth of assets were locked in the Compound protocol by 2020.
Compound connects lenders and borrowers through smart contracts on the Ethereum network. The platform primarily has two types of users: lenders and borrowers. Lenders can send their cryptocurrencies to an Ethereum address controlled by Compound to earn interest. Borrowers provide collateral in the form of cryptocurrency and are allowed to borrow other cryptocurrencies supported by Compound up to a certain percentage of the collateral’s value.
Lenders are rewarded with COMP coins based on the amount of cTokens held in their wallets, and interest rates vary depending on the current supply of the asset. The more liquidity in a market, the lower the interest rate. This mechanism allows users who lend assets to the protocol to borrow any other cryptocurrency supported by Compound up to the amount of the provided collateral.
An important aspect of borrowing on Compound is the risk of liquidation. If the value of the borrowed asset increases and exceeds the value of the provided collateral, the borrower may be liquidated. This ensures the protocol remains solvent and lenders can trust the system.
How to Buy Compound (COMP) with TRY?
Binance TR is the most suitable cryptocurrency exchange for investors in Turkey who want to buy Compound (COMP). Binance TR allows quick account creation and offers over 100 cryptocurrencies, including COMP. Follow these steps to buy Compound (COMP) with TRY on Binance TR.
How to Open an Account on Binance TR?
Opening an account on Binance TR is quite easy. Go to trbinance.com and continue from the “Create Account” step. In the first step of account creation, you will be asked to enter basic information such as email address, phone number, name, surname, date of birth, nationality, and T.C. identity number.
After entering the requested information completely and correctly, an email/SMS verification will be conducted to confirm the information. After completing this process, you will proceed to the second step, which is identity verification (KYC).
How to Verify an Account on Binance TR?
Identity verification on Binance TR is one of the security procedures that must be completed before starting cryptocurrency trading and during account creation. This process is also necessary to protect both the user and the cryptocurrency exchange. You can choose to complete the verification process from your phone or through Binance TR’s official website. Note that you will need your mobile phone to verify your identity on the website.
On the Binance TR website, hover over the “Profile” option at the top right, click on “Identity Verification and Limits” from the drop-down menu, and then click on “Verify.” After this step, you will need to scan the QR code that appears with your phone’s camera and continue the process on your phone. If you cannot scan the QR code, you can click on the “Copy URL” option to send the identity verification address to your phone via SMS.
When you enter the address on your phone or scan the QR code, a screen like the one below will open on your phone. First, tap on the “Identity” option to continue.
Next, a screen like the one below will appear. To continue the verification process, first select the document type that suits you best.
After selecting the document type, tap on the “Upload Front Side” option to continue. After taking a photo of the front side of the document according to the selected document type, tap on the “Upload Back Side” option and take a photo of the back side of the document and upload it. Make sure the images are clear and the information in the photos is easily readable when taking photos of the front and back sides of your ID card or driver’s license.
Then, tap on the “Selfie” option to continue. At this point, your phone’s front camera will open, and you will need to scan your face. Make sure your face fills the camera area as much as possible once the camera is open.
After completing all these steps accurately and completely, your identity verification process will be completed shortly.
How to Deposit TL on Binance TR?
You can easily deposit TL into your Binance TR account through all banks. You can deposit and trade TL 24/7 from your Vakıfbank, Ziraat Bankası, İş Bankası, Akbank, Fibabanka, Şekerbank, and Türkiye Finans accounts without interruption. Deposits up to 50,000 TL can be made 24/7 with FAST from other banks. Deposits over 50,000 TL from other banks are processed during EFT hours.
To deposit money into your Binance TR account, first go to the trbinance.com address, hover over the “Wallet” option at the top left of the homepage, and click on the “Deposit” option from the drop-down menu.
Then, a page like the one below will open, and you can continue the deposit process by selecting your preferred bank from this page. If your preferred bank is not yet integrated with Binance TR, you should continue by clicking on the “Other Banks” option.
In this example, we will continue using Vakıfbank, but the process is the same for all other banks. When you click on the Vakıfbank option, you will see an account name and IBAN address where you can make a transfer, EFT, or FAST to that bank. All you need to do now is use the information shown on the bank’s page to transfer the amount you want to deposit into your Binance TR account via transfer, EFT, or FAST.
After your bank completes the transfer, the funds you sent will automatically be reflected in your Binance TR account wallet.
How to Buy COMP Coin with TL on Binance TR?
After depositing money, you can proceed to the step of buying COMP coin with TL by clicking on the “Buy-Sell” option in the top left menu of the Binance TR website.
After clicking on this option, the page below will open. You can go to the COMP purchase page with TL by typing “COMP” in the search section on the right side of this page and clicking on the COMP/TRY option from the results.
Now the COMP trading page below will open. On this page, in the red-marked area, you need to enter the price at which you want to buy COMP in the first box and the number of COMP you want to buy in the second box. After entering the amount, you can complete your purchase by clicking the “Buy COMP” button.
What is Binance TR?
Binance, the world’s largest cryptocurrency exchange by trading volume, officially launched its platform Binance TR for cryptocurrency investors in Turkey in 2020. The cryptocurrency exchange, headquartered in Istanbul, can be accessed at trbinance.com.
Binance TR leverages Binance’s technology, security measures, and liquidity provided through the Binance Cloud infrastructure to offer both fiat-to-crypto and crypto-to-crypto trading services. Users in Turkey can seamlessly deposit and withdraw Turkish lira (TRY) through bank channels and trade various cryptocurrencies with TRY pairs via Binance TR.
Users supported by Binance TR gain access to market-leading spot trading liquidity, a powerful matching engine, advanced security protocols, custody solutions, and risk controls, all backed by Binance’s core functionalities.
