Cryptocurrency Q&A How does compound make money?

How does compound make money?

Nicola Nicola Fri Jun 28 2024 | 6 answers 1469
Could you elaborate on how Compound, a decentralized lending protocol, generates revenue? I'm curious about the underlying mechanisms that allow it to profit from its operations. Specifically, how does Compound facilitate lending and borrowing of cryptocurrencies while also earning a return for its stakeholders? What are the key factors that contribute to its profitability, and how does it ensure that the system remains secure and efficient? Additionally, how does Compound distribute its profits among its users and other stakeholders? I'd appreciate a concise yet comprehensive explanation of how Compound makes money in the cryptocurrency and finance space. How does compound make money?

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