The coin that powers Compound has increased by 21% on the day, just a few days after the decentralized lending protocol launched a fixed 4% APY yield service.
COMP, which kicked off the yield farming craze when it launched about a year ago, is now worth $384. That’s a 70% increase in the past week.
Yield farming is the practice of scraping decentralized finance protocols for ultra-high yields, often through lending tokens and earning governance tokens, like COMP, in return.
Yield farmers rinsed Compound’s protocols for all its governance tokens shortly after it launched, so these days the yield on Compound simply refers to the interest rate on loans.
COMP has risen after Compound launched its latest product, Compound Treasury, on June 29. The service is designed for “non-crypto native businesses and financial institutions.”
With Compound Treasury, non-crypto companies can count on “guaranteed” yields of 4% on the US dollar-powered stablecoin, USDC, without falling into
Źródło: https://decrypt.co/75154/compound-comp-rises-70-in-week-after-launching-guaranteed-yields-of-4
