Compound is a pioneering decentralized lending protocol that empowers users to engage in borrowing, lending, and interest-earning activities using the same tokens they have lent. By leveraging their governance token (COMP), Compound further enables the tokenization of assets locked within the system.

In a recent development, Compound III was unveiled in August 2022. This latest iteration of the platform introduces a significant enhancement by ensuring that user collateral remains intact and is not distributed upon deposit.