Accept Compound Payments

Compound operates as a decentralized blockchain protocol enabling users to lend or borrow specific cryptocurrencies. It facilitates the creation of money markets by consolidating assets and dynamically determining interest rates based on asset supply and demand.

To supply or lend crypto assets through Compound, individuals deposit their assets into the protocol, which aggregates them into a liquidity pool. Upon deposit, users receive cTokens in exchange, initiating interest accrual through holding these cTokens.

Once assets are supplied, users can utilize them as collateral. Depending on the collateral factor of the deposited assets, users become eligible to borrow from Compound. Utilizing an overcollateralization model, Compound ensures borrowing never exceeds the collateralized amount.