Compound Finance: discover the interest-earning tech behind Flex

Compound Finance is a technology, not a bank

  1. They’re borderless, efficient, and flexible. Imagine the potential of programmable assets — they can go anywhere, near-instantly, and for free, and without any human interaction. The efficiency savings alone are huge (no branches, staff, or outdated tech to maintain).
  2. They can be tied to real-world assets. Think USD-backed stablecoins like our very own Constant (CONST). The world is tokenizing rapidly and you can now find everything from gold to fine art represented by tokens on the blockchain.
  3. They can adapt to our global, interconnected, and rapidly-changing world. Many digital assets, including bitcoin and ethereum, aren’t classed as securities. This frees them from old-world rules that would’ve inhibited innovation, making them fit for the needs of today and tomorrow.

How Compound Finance handles your Flex deposits

  1. First, we convert your deposit into a supported asset on Compound Finance, though always a USD-backed stablecoin to preserve its value.
  2. Then, we send your deposit to the Compound Finance liquidity pool — a fancy name for a pool of assets. For Flex, it helps to think of it as a lending pool, since that’s the function it performs.
  3. Once in the pool, your money converts to cTokens. These represent your balance, and allow the protocol to handle multiple asset types with ease.

Algorithmic interest rates and anytime withdrawals

Is Compound Finance secure?

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