Compound Finance DeFi Tutorial: How to Earn Interest on your Crypto & $COMP Tokens

in this video I'm going to show you how you can borrow an earn interest from your crypto with the D fire platform compound finance you I really hope you enjoyed this video today and if you do then please give me a like hit the subscribe button and share if you further others may benefit also please do head over to my website every bit helps dot code at UK for more tips reviews and step-by-step guides when most people buy their crypto to hold they store it safely away into a wallet or leave it over an exchange without it earning any interest in the sense that a traditional bank or savings account would however compound finance are on a mission to change that compound finance is a service that lets you borrow cryptocurrency or lend it out and earn interest both lenders and borrowers get more value from their crypto lenders will earn interest while borrowers deposit crypto to gain access to credit and this is all done without the headaches or rules of banking plus you can even earn money by borrowing and taking out a loan with compound finance but more about that later there are quite a few defy platforms emerging however compound finance are one of the biggest and have some of the highest rates around right now as you can see from here and they have the backing of some very prominent investors who include the likes of poly chain capital Bain Capital and coinbase who have also recently announced their support for their governance token Kampf and the comp token is given to lenders and borrowers to incentivize them to participate in the different markets across the compound protocol which users can collect and withdraw or use to vote on the governor's proposals for the protocol there's no minimum for either lending or borrowing and lenders earn interest about every 15 seconds or every etherion block and you can use compound for as long as you like without any penalties for withdrawing other than paying the gas fee and because it's decentralized ID verification or kyc is not required either so that anyone could start lending or borrowing from anywhere in the world so let's take a look into compound finance now and I'll pop a link to compound finance in the summary below so if we head across to markets at the top of the screen on this overview in here you can see the total supply in other words how much people are lending across the top three different markets plus you can see the total number of suppliers in here - then you have the total that's been borrowed and the number of borrowers as well and at the bottom of the screen here you'll see all the different types of markets thinking you can borrow or supply so from here you have the options of the likes of tether USD Coyne ether and basic attention token and it then shows you the gross supply the supply APY the gross borrow and the borrow APY - now these AP wise will obviously fluctuate however at the moment you can see that the basic attention token is providing the highest APY around 20% and if you're interested in lending as I said this isn't the only defy platform around and there are others such as Abe which are try and cover in a separate tutorial but if you go to site such as defy rates you'll be are see where you can get the best yields across all the different types of assets and you can view these as their current rates and you can also view them as as 30-day average too but going back to compound if you wanted to lend out or borrow some tokens you'll need to make sure that you have that token plus some ease to pay for the gas which you'll need to pay a few times so let's go ahead and connect to the app now so if we go to the app in the top right hand side of the screen and you'll then be prompted to connect your aetherium wallet to compound so you have the likes of a coinbase wallet which is actually different to the exchange you can connect a ledger or a metamath wallet and if you have the likes of a treasurer Hardware wallet you could always connect this by your meta mas wallet if you're connecting up your ledger you'll need to make sure that you have the contract data and browser support set to yes and you want to unlock and over near theory an app then you'll need to select your address but for the purposes of this tutorial I'm going to select my meta masala which is actually connected to my ledger device so that I can show you the gas fees then once you're connected you'll see the dashboard and the balances for all the assets that are available to lend on the left or borrow on the right so I've got some 0x so if I wanted to earn interest on that asset I can click on to it and you'll then be prompted with a new screen and we're going to be supplying 0x and it will show you the supply APY on the Left the price collateral fetcher which is borrowing up to 60% plus your wallet balance and we're going to enable now at this costs money to interact in terms of gas fees so gas fees are quite expensive at the moment so as it states here it's gonna cost me 48 cents which may not be a huge amount but you do need to pay gas a few times and these can be edited so you could always check over on earth gas station - what kind of rates will work for you so as you can see fast here is 37 Gwaine or you can go to standard which will take about five minutes so I'm just going to go ahead and edit that go to advanced and change that to 32 and then confirm and you'll then need to wait for the transaction to clear but you can also check that over on ether scan if you wish and it states here will take roughly five minutes and then about ten minutes later that's now done and it cost me thirty two cents so now that I've enabled 0x I can supply my tokens and I can enter in the amount that I'd like to supply or hit max and then on to supply and again you'll need to pay more gas fees which you can edit if you want and confirm so now that's gone through that's cost me $1 33 and it took about five minutes to complete so over on the dashboard now you can see that my supply is 460 dollars or 1324 0x and in the center here we have my net a py which will show you as an average if you are lending more than one asset now as I mentioned earlier you'll also be owning comp tokens when you're lending and borrowing and that can be found under the vote tab at the top here so everyday 2880 comp tokens are distributed to lenders suppliers and borrowers had this is done proportionally to how much interest is being paid to each market would the majority being paid to whichever has the most interest and the comp tokens can be collected and withdrawn or exchanged on the likes of unis or you can use to vote on proposals for the compound protocol which you can vote for manually or you can delegate this out to another user if you wish now because the kanto cans are tradable tokens and hold their own value you may want to earn as many as possible which I'll show you how to do a little later in this video now many users fixate on the high interest rates for lenders and compound however you can also take out loans too all you need is some crypto to deposit as collateral and because it's decentralized there are no credit checks income statements or delays so you can use the assets that you have as collateral to take out loans by turning on the collateral from here and just be careful as there is a liquidation clause so don't ever over borrow and to use your tokens as collateral again you'll need to interact connect and pay gas now this was just one test account but there is another that I've been testing over the past few days and lending be 80 and tether and this account shows me the APY so that's currently at 26 in b80 and just under 6 percent in tibur and it also shows me amount that I've earned so far in each of those assets - now I've already collateralized maybe 80 as you can see from the button here so I'll show you over that borrowing on the right hand side now and it will then show my borrowing limit and the balance in here too as well as what's actually safe to borrow with a lion currently in yellow showing the risk in here too and you could do the same thing for the likes of die as well now just going back to our comp tokens as I said earlier there's a way that you can earn more of these and you can do that by farming the tokens and you can earn comp as a borrower and also because you've deposited now this is a little outside the scope of this video but you can use sites such as insted up which you'll find on their list of integrated sites here and you can maximize your comp with mining and I can cover this in a separate tutorial if this is something that you're interested in and as you can see from here there are whole host of community built interfaces integrating the protocol for example you can click on to earn and view some integrator pull some wallets and then under manage you have the likes of Exodus well you can earn interest on your die from right inside your wallet Hoss the dish Fox app which I've actually covered separately also integrates with compound and this is great as you won't need to integrate or connect these platforms up separately so that was a brief overview of compound finance and I hope you enjoyed this video today and if you did then please give me a like hit the subscribe button and please do head over to my website every bit helps code it okay for more tips reviews and step-by-step guides thanks and I'll see you soon you

Channel: Every Bit Helps

Views: 105,831

Keywords: every bit helps, compound finance, decentralized finance, dai token, compound finance tutorial, how does Compound Finance work, cTokens, COMP tokens, $COMP, How to earn COMP tokens, how to earn interest on bitcoin, compound finance explained, compound finance defi, dai lending, eth lending, eth lending explained, connect ledger to compound finance, conect Metamask to Compound finance, compound finance review, earn interest on crypto, defi, compound finance borrowing tutorial

Id: VYp9oiEI7GU

Length: 10min 54sec (654 seconds)

Published: Mon Jun 22 2020