OKEx, a leading global exchange, recently announced that it had listed the COMP token, which is the native token of the Compound protocol. The Compound protocol runs on the Ethereum blockchain as an autonomous interest-rate protocol. Spot trading for COMP on the OKEx exchange started on June 29 at 6 AM (UTC). Deposits were opened on the same day at 5 AM (UTC) and withdrawals began at 9 AM (UTC).
A Brief Look at Compound
Compound was launched in 2017 by Geoff Hayes and Robert Leshner. The platform makes it possible for any user to borrow, lend, and earn interest via crypto in P2P transactions via a decentralized protocol. Since then, Compound has become one of the key companies within the DeFi ecosystem. Today, it is the world’s biggest DeFi protocol with over $600 million worth of crypto assets locked in the protocol. As Visionary Financial recently reported, total value locked in decentralized finance has surged since 2017. Five of the top 10 protocols in DeFi are lending based, as the sector has become quite lucrative. In 2017, $4 dollars of value was locked in DeFi protocols. If we fast forward to 2020, the market is worth well over $1 billion.
The COMP token, which powers the Compound protocol, is called a governance token. Holders of the token have the right to vote on various decisions that affect the development of the protocol. They can vote on technical aspects of Compound as well as decisions on adding new coins.
What the Leadership Had to Say
According to Jay Hao, the OKEx CEO, the Compound protocol has been a leader in the DeFi industry for many years. He noted that through continued development, it has set a fine example of how far development in the space has come.
Hao said that OKEx was extremely happy to help take part in the growth of the DeFi sector. He said that OKEx believes the DeFi sector could eventually be a disruptive force in the financial sector. It would enable everyone to access equal opportunities in the financial services sector. Hao noted that this was in line with the OKEx vision of opening up the financial services sector to everyone. To achieve this vision, they have even formed partnerships with others in the crypto sector such as the partnership with Paxful.
How OKEX Picks Project
OKEx works hard to select projects that increase liquidity at the exchange. Behind each new listing, there is an exhaustive process to ensure all aspects of a project are checked. The checks include the legal aspects of a project, the business model, the community behind it, and market potential. OKEx performs this due diligence to ensure its user base can feel protected. OKEx now serves millions of users in 100+ countries.
About the OKEx Exchange
OKEx is one of the biggest crypto spot trading and derivatives exchanges in the world. It offers a diverse marketplace for miners, crypto traders, and institutional investors. Through the platform, users can manage their crypto assets, hedge risk, and access better investment opportunities. Besides spot trading, you can access derivatives trading. It includes perpetual swaps, options, and futures trading. The platform is always looking into listings as well as reviewing its current offerings. For instance, in September 2019, OKEx Korea said it was considering delisting privacy coins due to regulatory concerns.
It is not clear how this listing will affect the price of COMP. However, when OKEx listed Tezos a while back, the price shot up quickly. Even if there is no price hike, listing on the OKEx platform will give the Compound protocol exposure and help to expand participation in the DeFi space.