# Compound

Compound is a decentralized finance money markets protocol that was originally founded in 2017 with upgrades that followed: Compound v2 and lastly v3 in August 2022.

> While **Compound v2** supports a wider range of possible collateral assets (ETH, DAI, BAT, ZRX, USDC, WBTC, LINK, UNI, COMP, MKR, SUSHI, AAVE and YFI) and a wider range of debt assets (DAI, ETH, BAT ZRX, USDC, WBTC, USDT, TUSD, LINK, USDP, UNI, COMP, MKR, SUSHI, AAVE and YFI) in comparison to **Compound V3** that is focused on capital efficiency and risk-reduction with the feature of **single borrowable assets**.

Compound V3 functions differently from its previous version, as instead of unified liquidity, assets have their own separate market.

This means that an asset's market only allows for it to be either borrowed or supplied as collateral, so a user that wants to earn yield can supply it, but not borrow it.

On the other hand, users who want to borrow it can supply a range of assets, but those will not be earning any yield, and only borrow interest will be paid on the borrowed asset.

The available markets are:

* USDC&#x20;
* ETH&#x20;
* USDT
* USDS
* wstETH

In Compound, when you supply collateral, it remains your property. It can never be withdrawn by other users (except during liquidation).

In 2020, Compound introduced its native governance token, COMP, which allowed users to participate in the protocol's decision-making processes.&#x20;

The COMP distribution contributed to the growth of Compound as a protocol in the defi ecosystem, and it’s also considered as the “yield farming” pioneer in defi.

{% hint style="info" %}
*COMP is also distributed as rewards to users who interact with the protocol by lending or borrowing.*
{% endhint %}

***

## Related Articles:

* [Dashboard & Use-case](https://help.defisaver.com/protocols/compound/dashboard-and-use-case)
* [Compatibility & Automations](https://help.defisaver.com/protocols/compound/compatibility-and-automations)
* [How to earn and withdraw COMP tokens](https://help.defisaver.com/protocols/compound/how-to-earn-and-withdraw-comp-tokens)


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://help.defisaver.com/protocols/compound.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.
