How to get COMP coins? Introduction to several ways to obtain COMP coins

To acquire COMP coins, users can participate in Compound's lending protocol, purchase them on exchanges, engage in airdrops, partake in governance, compound them, or engage in yield farming.

Oct 09, 2024 at 08:54 am

How to Get COMP Coins: A Comprehensive Guide

1. Earn COMP through Compound

• Supply collateral: Deposit assets such as ETH, BAT, or DAI into Compound's borrowing and lending protocol.
• Borrow assets: Take out loans in stablecoins like DAI using the collateral you provided.
• Accumulate COMP: Receive COMP tokens as a reward for providing liquidity and participating in the Compound ecosystem.

2. Purchase COMP on Exchanges

• Centralized exchanges: Buy COMP on major crypto exchanges like Coinbase, Binance, or Kraken.
• Decentralized exchanges (DEXs): Trade COMP on DEXs such as Uniswap, SushiSwap, or Balancer.

3. Participate in Airdrops

• Uniswap airdrop (September 2020): Users who provided liquidity to Uniswap before a specific date received COMP tokens.
• Other potential airdrops: Follow Compound's social media channels or announcements for updates on future airdrops.

4. Participate in Compound Governance

• Become a Compounder: Delegate COMP tokens to Compound Governors to participate in protocol governance.
• Earn COMP for voting: Receive additional COMP tokens as a reward for participating in proposals and voting on protocol changes.

5. Compounding COMP

• Deposit COMP into Compound: Earn interest on your COMP by depositing it into the protocol.
• Borrow against COMP: Take out loans in DAI or other stablecoins using your COMP as collateral. Use the borrowed funds to purchase more COMP and repeat the process.

6. Yield Farming

• Provide liquidity to liquidity pools: Deposit COMP into liquidity pools on DEXs or yield farming platforms.
• Earn rewards: Accumulate rewards in COMP or other cryptocurrencies for providing liquidity.

Note: Availability and specific parameters may vary depending on the platform and the date. Always conduct thorough research before engaging in any crypto-related activities.