A DeFi protocol like Compound Finance works on the mechanism of over-collateralization on a global platform. Overcollateralization means borrowers have to supply more value to avoid liquidation, and it decides how much you are allowed to borrow based on the quality of assets.
COMP is the native token for DeFi protocol, Compound. Users can mine COMP by lending and borrowing assets. It is an ERC20 token. By putting ETH, or other ERC20 tokens like USDC in the protocol, a user can get an equivalent amount of COMP tokens and borrow crypto tokens.
The importance of DeFi has reached its peak. Millennials and newbies have embraced this new technology, but they are still in the dilemma of developing a DeFi protocol like Decentralized Finance like Compound Finance. This dilemma exists because they are searching for a leading Decentralized Finance development company that can help them formulate decentralized protocols like Compound in an advanced decentralized ecosystem. CES holds the expertise and knowledge in developing DeFi protocols like Compound.