Compound Rallies 59% In A Week And Promises 4% Fixed Interest Rate

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Last Updated on 7 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Last summer, DeFi (Decentralized Finance) burst out into the cryptosphere and surprised many when tokens like Chainlink and Sushi went on uncontrollable bullruns. By the end of August, the Chef Nomi scandal (also known as the SushiSwap Saga) took a lot of DeFi’s shine and it would last until well into the 2020-2021 Bitcoin bull run before investors dared to tread the DeFi investment water again.

Now, as most DeFi coins have followed the May and June mayhem which saw Bitcoin decline from $64,000 in April to $34,000 at the time of writing, most DeFi coins are well off their highs as well. One token stubbornly has been rising over the past week, rising by some 59% in the past seven days even.

Advertentie.

4% fixed interest

Compound, currently ranked 42 on CoinMarketCap, is a DeFi platform that supports crypto liquidity pools. The pools allow crypto holders to earn interest on their crypto holdings instead of just holding them.

Last week, the Compound Protocol developers announced a breakthrough, launching the Compound Treasury. Thanks to this, they claim their token is able to offer a 4% fixed interest rate. Knowing that any normal bank account offers a measly 0.10% interest per year, an exceptional rate if it works.

The offer, currently only available to institutions, claims that:

Businesses can simply wire their U.S. dollars to their Compound Treasury Account and commence earning a guaranteed, fixed interest rate of 4 percent per annum which trumps the rates offered by an average U.S. Dollar Savings Account by miles.

The cryptosphere’s interest is certainly awakened, with the coin seeing hefty gains on a daily basis.