Compound Price (COMP)

Each Compound III market has a base asset. Suppliers can earn interest on a positive balance in that asset, and borrowers can draw it against approved collateral. The choice of market determines which asset you can borrow.

Collateral assets support the loan and do not earn the base asset’s supply interest. If collateral loses value or the debt grows too large, the position can become eligible for liquidation. Check the collateral limits and rate in the market you use.

COMP is used in protocol governance. Its market price does not measure the return on a deposit. To compare lending terms, start with the base asset, the applicable rate, and the collateral the market accepts.