Compound is a decentralized finance (DeFi) platform that functions on the Ethereum blockchain, enabling users to generate interest by depositing their cryptocurrencies into lending pools. In return for their deposits, users receive cTokens, which can be freely transferred but can only be utilized for the original cryptocurrency deposited. Compound incentivizes its users with COMP coins to encourage participation. Borrowers have the option to secure loans by providing collateral; however, there is a risk of liquidation if the borrowed amount surpasses the collateral’s value. This article aims to address two fundamental questions: What is Compound (COMP), and how can one purchase Compound (COMP) using TRY?
What is Compound (COMP)?
Compound operates as a DeFi protocol on the Ethereum blockchain, aiming to create a decentralized money market without relying on traditional financial intermediaries like banks. It facilitates the lending and borrowing of various cryptocurrencies within its ecosystem. Compound allows users to deposit their cryptocurrencies into lending pools where borrowers can access them later. Lenders earn interest on their deposits in the form of cTokens, such as cETH, cBAT, or cDAI. These cTokens represent the deposited assets and can be freely traded but are restricted to use within the Compound platform. The process is automated by Compound’s code, enabling users to withdraw their deposits at any time. To incentivize users, Compound rewards them with COMP coins for engaging with the platform, whether through borrowing, withdrawing, or repaying assets. This model has attracted a significant user base and inspired similar approaches in other DeFi projects. By 2020, over $500 million worth of assets were locked in the Compound protocol, as reported by DeFi Pulse.
Compound connects lenders and borrowers through smart contracts on the Ethereum network. The platform caters to two main user categories: lenders and borrowers. Lenders can earn interest by sending their cryptocurrencies to a designated Ethereum address controlled by Compound, while borrowers can provide collateral in the form of cryptocurrency to secure loans on other supported cryptocurrencies within the platform, up to a specified percentage of the collateral’s value. Lenders are rewarded with COMP coins based on the amount of cTokens they hold, and interest rates vary depending on the asset’s current supply. A higher liquidity level in the market results in lower interest rates, allowing users to borrow any supported cryptocurrency up to the collateral’s value.
A crucial aspect of borrowing on Compound is the risk of liquidation. If the borrowed asset’s value surpasses the collateral’s value, the borrower may face liquidation. This mechanism ensures the platform’s solvency and fosters trust among lenders.
How to Buy Compound (COMP) with TRY?
For investors in Turkey looking to purchase Compound (COMP), Binance TR offers a convenient cryptocurrency exchange platform. Binance TR allows quick account setup and provides access to over 100 cryptocurrencies, including COMP. Follow the steps below to buy Compound (COMP) with TRY on Binance TR:
How to Open an Account on Binance TR?
Creating an account on Binance TR is a straightforward process. Visit trbinance.com and proceed with the “Create Account” step. During the initial account creation step, you will be required to input basic information such as your email address, phone number, name, surname, date of birth, nationality, and T.C. identity number.
After entering the necessary information accurately, an email/SMS verification will be conducted to validate the details provided. Following this step, you will progress to the second phase, which involves identity verification (KYC).
How to Verify an Account on Binance TR?
Identity verification on Binance TR is a crucial security measure that must be completed before engaging in cryptocurrency trading and account creation. This process is essential to safeguard both the user and the cryptocurrency exchange. You can opt to complete the verification process using your phone or through Binance TR’s official website. Ensure you have your mobile phone on hand to complete the identity verification process via the website.
On the Binance TR website, navigate to the “Profile” option at the top right, select “Identity Verification and Limits” from the drop-down menu, and then click on “Verify.” Subsequently, you will need to scan the QR code displayed using your phone’s camera and continue the verification process on your phone. If you encounter issues with scanning the QR code, you can select the “Copy URL” option to receive the identity verification address on your phone via SMS.
Upon entering the address on your phone or scanning the QR code, a screen will appear prompting you to proceed with the identity verification process. Begin by tapping on the “Identity” option to continue. Next, select the document type that aligns with your identification best to progress with the verification process.
After selecting the document type, tap on the “Upload Front Side” option to upload a photo of the front side of your document as per the selected document type. Follow this by tapping on the “Upload Back Side” option to capture an image of the back side of the document and upload it. Ensure the images are clear and the information is legible when photographing both sides of your ID card or driver’s license.
Subsequently, tap on the “Selfie” option to continue. Your phone’s front camera will activate, and you will be prompted to scan your face to verify your identity. Position your face appropriately within the camera area to ensure a successful verification.
Upon completing all the steps accurately, your identity verification process will be finalized promptly.
How to Deposit TL on Binance TR?
Depositing TL into your Binance TR account is a seamless process that can be facilitated through all banks. You can deposit and trade TL 24/7 from various banks, including Vakıfbank, Ziraat Bankası, İş Bankası, Akbank, Fibabanka, Şekerbank, and Türkiye Finans, without any interruptions. Deposits up to 50,000 TL can be made 24/7 using FAST from other banks, while deposits exceeding 50,000 TL from other banks are processed during EFT hours.
To deposit funds into your Binance TR account, visit the trbinance.com address, hover over the “Wallet” option at the top left of the homepage, and select the “Deposit” option from the drop-down menu.
Proceeding, a page will display your preferred bank selection, allowing you to continue the deposit process. In the event your preferred bank is not integrated with Binance TR, proceed by selecting the “Other Banks” option.
For illustrative purposes, let’s consider Vakıfbank as the selected bank. By clicking on the Vakıfbank option, an account name and IBAN address will be presented, enabling you to initiate a transfer, EFT, or FAST transaction to that bank. Utilize the information provided on the bank’s page to transfer the desired amount into your Binance TR account via transfer, EFT, or FAST.
Upon the completion of the transfer by your bank, the funds will automatically reflect in your Binance TR account wallet.
How to Buy COMP Coin with TL on Binance TR?
Following the deposit of funds, you can proceed with purchasing COMP coin using TL by selecting the “Buy-Sell” option from the top left menu on the Binance TR website.
Upon selecting this option, a page will appear, allowing you to navigate to the COMP purchase page with TL. Type “COMP” in the search section on the right side of the page and click on the COMP/TRY option from the search results.
Subsequently, the COMP trading page will display. In the designated area marked in red, enter the price at which you wish to purchase COMP in the first box and the quantity of COMP you intend to buy in the second box. After inputting the necessary details, finalize your purchase by clicking the “Buy COMP” button.
What is Binance TR?
Binance TR, officially launched in 2020, serves as a cryptocurrency exchange platform tailored for investors in Turkey. Leveraging Binance’s technology, security measures, and liquidity provided through the Binance Cloud infrastructure, Binance TR offers both fiat-to-crypto and crypto-to-crypto trading services. Users in Turkey can seamlessly deposit and withdraw Turkish lira (TRY) through bank channels and trade various cryptocurrencies with TRY pairs via Binance TR.
Users supported by Binance TR gain access to market-leading spot trading liquidity, a robust matching engine, advanced security protocols, custody solutions, and risk controls, all underpinned by Binance’s core functionalities.
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Disclaimer: The information presented in this article does not constitute investment advice. Investors should be mindful of the high volatility and associated risks of cryptocurrencies and conduct thorough research before making any investment decisions. Stay updated and follow our news on Telegram, Facebook, Twitter, and Coinmarketcap.
