Compound Finance Review: DeFi Unleashed! #Finance

are you sick and tired of getting shafted by your bank with their meager Interest Rates fed up with being paid a pittance on your cash deposits well I have some news for you compound text-decoration: none;">Finance could be the solution you’re looking for my name is guy and today I want to talk about one of the hottest lending platforms to come out of the defy space in this CashNews.co I’ll go over what compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance is I’ll also take a look under the hood of the platform to give you a basic understanding of how it works and finally I’ll show you how to get started on compound

Finance in my step-by-step walkthrough and don’t forget to stick around till the end if you want to hear my thoughts on why I think platforms like compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance could play a major role in Crypto adoption and lead to some obscene

inflows in the Crypto space now before I get this show on the road there are a few quick disclaimers to get out of the way yes I may be your

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto guy however I am certainly not your financial adviser these CashNews.cos are made for educational purposes only and are certainly not financial advice also for those of you who’ve learned it on the channel for the

first time welcome to the bureau if you get any value from this CashNews.co I’d appreciate it if you could smash that subscribe button and flick that Bell follow those two brief steps and you won’t miss another one of my color: #1a73e8; text-decoration: none;">Crypto CashNews.cos ever again okay let’s now dive into compound Finance according to the authors of the whitepaper compound

Finance is a quote decentralized protocol that establishes money none;">Markets with algorithmically set Interest Rates based on supply and demand allowing users to frictionlessly exchange the time value of ethereum Assets now that’s a mouthful and a half put simply all that compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance does is match those who want to borrow money with those who want to supply money to earn interest yes it’s a little more complicated than that as the money we’re

talking about here is etherion based Assets as things stand right now you can lend or borrow aetherium die USD coin or ger sigh which is legacy die wrapped bitcoin bat and 0x if you’re not sure what die is it’s a stable coin that’s been created to hover around the

$1.00 price point and is used instead of US dollars on many defy platforms if you want to learn more about this Cryptocurrency then just click the CashNews.co right here now it would be wrong

of me to stand here and give you the impression that compound Finance is the only defy lending platform out there a cool website that I like to use is Loans

can I uh which tells you the different Interest Rates for defy lending platforms naturally as a savvy saver I like to get the best possible deals and balance that against platform reputation you can see that compound bold; color: #1a73e8; text-decoration: none;">Finance is one of the higher paying Loan platforms for dice table coin with interest Returns sitting at over 8% per year at the time of shooting this CashNews.co a quick look at people’s favorite defy website defy

past comm will show you that compound is actually the second biggest project in terms of USD value locked on the platform over one hundred and fifteen million dollars worth of aetherium based stock is locked on compound #1a73e8; text-decoration: none;">Finance that’s not too shabby at all to put that another way Crypto holders have trusted compound with over one hundred and fifty million

dollars on compound an astonishing thirty six million dollars worth of Loans were created within the last month with outstanding Loans being a cool 41 million dollars and Loan repayments hit around twenty five million dollars in the last thirty

days now that’s some serious lending platform action the astute among you might have noticed that diet makes up the lion’s share of the lending action on compound the reason why is quite simple by lending out dice table coin on the platform you get double the interest rate of the next

highest Yielding etherion based asset before I move on yes eight percent per year doesn’t sound like much when US Crypto guys are used to daily swings of twenty percent

or more however I just want to take a moment out to show you how insane an eight point zero seven percent return per year actually is let’s say I jumped into my time machine and brought back guy jr. to twenty twenty little guy is twenty years old and has two and a half thousand dollars to

invest let’s assume the government keep their word and allow guy jr. to retire at 65 two and a half thousand dollars at 8.0 seven percent interest rate compounding over forty five years would result in a lumps of $93,000 when he retires in other words close to 40 times the point here is that

8% interest compounds very nicely indeed although the truth is no one knows exactly what that $93,000 would by you in the future now if you’re excited about the idea of compounding your way to a million dollars I would urge you to hold your horses there are a few more things I would like to

share with you the simple way of looking at compound Finance is that you’re depositing aetherium base Assets like die making interest like you would at

a bank and eventually withdrawing those Assets your initial deposit plus interest I know it’s not necessary to know about C tokens however I think it’s super important for anyone who’s thinking of using a platform like compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance to have a solid understanding of what’s happening behind the scenes so why is this important well the truth is that the current

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto landscape is one in which we need to trust developers and strangers with our funds to me that’s not what none;">Crypto should be about instead it’s about self responsibility self reliance and freedom a massive part of achieving this is for regular people like you and me to have a solid understanding of what’s happening behind the scenes at these platforms and know what’s

happening to our money sure you could choose to run into the Crypto forest blindfolded and be steered by hype however those that got rekt by the lights of bit connect will tell you that this

is not a good idea if you’re not interested in knowing what happens in the background a compound Finance then feel free to skip forward but if you want a basic

understanding of what the heck is going on I’m going to explain what C tokens are before I made this CashNews.co I got myself seventeen and a bit dice table coins here’s the ethos can transactions in this dummy wallet you can see 17 and a bit dice table coins coming into the wallet the

same amount of dye going out to compound Finance and over 850 see dye coming back into the wallet so what the heck is going on here well I learned out 17 dye on compound

Finance and compound sent back over 850 seed ID to me now this is still confusing because all I wanted to do is Loan out 17 dye an interest and now compound

are sent me back a seemingly random amount of tokens but the first thing to know is that seed I acts as a redemption token to redeem the actual dye you can think about these CDI tokens like old school United States silver certificates let me explain so before our Fiat monetary system the US dollar

along with almost every other currency in the world was just the promise to pay the bearer of the note real money in other words gold and silver holders of a $1 Silver Certificate that could literally walk into their local bank and exchange the one dollar bill for $1 worth of silver to put that

another way US currency could be redeemed for gold and silver the same is true for seed i these seed i tokens can be redeemed for actual dice table coins with any etherion based asset on compound text-decoration: none;">Finance the same logic holds true there is si eath c WB TC c USD C and so on you can find the currency exchange rate of these C tokens on the compound none;">Finance website by going to see tokens at the top of the page and scrolling down to the bottom you can now see that one CD is equal to around 0.02 die so that’s why I got back around 850 C die for my 17 dice table coins so the thing to know is that if I rocked onto

compound Finance later then I’d actually get a little less C die for my 17 die coins sounds like compound are pulling the C die or see token rates right out of thin air

right well not so much C tokens are designed to increase slightly after every aetherium block generated this is how interest is generated on the platform the number of CD tokens you will have will always remain the same however the C token are designed to increase in value and you should be able to

cash them out at a higher rate in the future when I looked at the compound Finance interface it looks like I have 17 and a bit died however what’s really happening

behind the scenes is that I’m holding around 850 seed I that’s been converted at the current exchange rate into dice table coin to generate my supply balance so in a nutshell there you have the basic mechanics of compound bold; color: #1a73e8; text-decoration: none;">Finance and how it works it’s also super important for anyone using compound Finance to note that seed I

tokens in your aetherium wallet are not from worthless airdrop instead they are Redemption tokens and represent your claim of real die stable coins on compound Finance so the

question is do you want to use compound Finance to get some of that sweet sweet interest if the answer is yes I’ll now show you how to get set up and going on the

platform to start head over to compound Finance and click the none;">Markets button at the top of the page you’ll then be taken to the market overview page where you can check out the Interest Rates available for different aetherium based Assets on the platform if you’re cool with the exchange rates on offer

and want to lend out die then make sure you have some in your etherion wallet with a little eath for gas you can pick die on a plethora of different exchanges however I’d recommend sticking to places like Kraken or coin based Pro if you want to go down the centralized exchange route or khyber

if you want to use a decentralized exchange option next you want to click the app button in the top right hand corner this then prompts you to connect your ethereal wallet to compound none;">Finance you can use the coin base wallet ledger or meta maths to get this done if you own a treasure you compare this hardware wallet device with meta mask to connect to compound if you like me and have a ledger then make sure your Hardware wallet is plugged into your computer

with the etherium app open make sure that contract data and display data are enabled with your ledger aetherium app just pop over to settings within the ledger app and make sure all is good there before connecting to compound color: #1a73e8; text-decoration: none;">Finance if you do not do this you’ll not be able to deposit dye on the platform next select the etherium wallet with your die and a bit of eath for gas you’ll then see your wallet balance is displayed on compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance in this example we want to earn interest on our 17 dice table coins so the next step is to click die and you’ll be asked to enable this

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto asset you’ll then be asked to accept the contacts on your ledger device once done you’ll see the option to supply die if you’re like me and like to take it to the max

you’ll mash that max button and click supply you’ll then be able to see your supply balance and the interest ticking up every few seconds to exit your position just click the asset you’ve supplied and hit the withdraw button it’s that simple oh yeah this method will work for

any asset listed on compound however I imagine most of you interested in using compound Finance will opt for diet because of the significantly higher interest rate so you

should now have a basic understanding of the mechanics behind compound Finance and know how to start earning that sweet defy interest however I want to take a few minutes out

to explain why I think that defy lending platforms could lead to some insane Capital inflows into Crypto in a nutshell banks are rewarding those with cash deposits with

miserly Interest Rates let’s pick on HSN see in the UK with their incredible deal of 2% interest if you lock your money up for three years why on earth would I want to do that if I can go to compound color: #1a73e8; text-decoration: none;">Finance and get four times that interest rate without committing to having my money locked up for years point is that there are probably hundreds of millions of people around the world sitting on cash deposits in banks earning almost no interest

whatsoever that’s not all pretty much every Stock Market in the world is near all-time highs after longest equities bull run in history yes these have pulled back in recent weeks due to fears around the economic impact of coronavirus however our friends over there at

bloomberg seem to think that over 85 trillion dollars worth of value is locked up in global stock Markets now we’ve got to ask ourselves if the typical stock investor thinks that the

risk to reward ratio is still good for stocks or does the idea of getting an 8 percent return on defy via lending platforms seem quite an attractive option now seeing that we’re at it let’s have a look at the global bond color: #1a73e8; text-decoration: none;">Markets according to sift ma these stand at 102 trillion dollars if I hop over to the UK investment supermarket Hargreaves Lansdown I can see that I can lend the UK government money by buying a Treasury gilt for those that don’t

know these are just UK government Bonds the astonishing thing is that I only get rewarded with 0.5% interest per year for Bonds maturing in July 2022 now let’s not kid ourselves the majority of these Assets are controlled by financial

institutions and pinched however there is still a significant portion of Assets controlled by regular people like you and me I don’t know what you think but these traditional Assets look like a pretty bad deal to me right now this had me thinking what would

happen if the guy on the street with a few thousand dollars lying around knew about the opportunity to make eight percent interest per year in defy could we see a massive surge in Kryptos interest among the no coiners the problem of course is that defy is still pretty damn hard to access for those

new to Crypto I’d wager that few Crypto newbies would be willing to learn how

to use meta masks or set up a hardware wallet and that’s in addition to the effort required to work out how to buy dye or other Crypto Assets in the first place however

the defy sector is still very young and I’m confident that things will become simpler for users over time all that being said I’ve got friends that will jump through an extraordinary number of hoops to get a special 3% interest rate deal with that in mind it might not be so far-fetched

to think that if we can get the word out about defy your average Joe we’ll start taking a look into it with the crazy Interest Rates on offer it could drive a wave of people to none;">Crypto and inject some serious Capital inflows into the Markets well done chaps for hanging on in there until the end I know I’ve hit you with a ton of

information however I’d like to have the opportunity to share my final thoughts about compound Finance with you in case you’ve not guessed I’m super excited

about compound Finance and the cracking dice table coin Interest Rates on offer there I’m also really impressed with the volume of lending and

borrowing taking place on the platform and I actually really like the straightforward interfaces I think thinking long and hard about how compound could make its lending platform even easier to use and to be honest I am at a loss of what else to recommend after fully evaluating compound

href="https://cashnews.co/finance" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Finance I now see why it’s the second largest defy project in the space all that being said I’d love to see the platform support more

style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto Assets another main gripe I have with the platform is the Interest Rates on offer outside of diet don’t seem that great to me short 4% interest for us DC and legacy die is okay

however with a theorem you can only earn a miserly 0.01 percent around half a percent for wrapped Bitcoin and 0.2% for basic attention token I still think that meta mask and ledger are probably too difficult for most text-decoration: none;">Crypto newcomers to use the good news is that compound Finance is integration with the coin base wallet provides a more user friendly way for

those new to Crypto to access the lending platform I’ve got to say that if there is one area in text-decoration: none;">Crypto that I’m super bullish on it’s got to be defined however it must be stressed that we shouldn’t expect a massive paradigm shift overnight I somehow doubt that traditional color: #1a73e8; text-decoration: none;">Finance is going to be disrupted all that quickly and that concludes my review of compound Finance what do you think

about the lending platform are you thinking about using it to earn some defy interest I’d love to hear your thoughts in the comment section below oh yeah remember to drop a like on this CashNews.co if you liked it and sub if you loved it I’ve been guy your

href="https://cashnews.co/crypto" style="font-weight: bold; color: #1a73e8; text-decoration: none;">Crypto guy and I’ll be bringing you even more Crypto content very soon thanks to

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