{"id":10679,"date":"2023-04-06T12:07:57","date_gmt":"2023-04-06T12:07:57","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=10679"},"modified":"2022-05-17T11:52:00","modified_gmt":"2022-05-17T11:52:00","slug":"how-to-mine-compound-comp-all-in-5-minutes","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes","title":{"rendered":"How to mine Compound (COMP)? All in 5 minutes"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes\/#how_to_mine_compound\" >How to mine Compound?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes\/#what_is_yield_farming_or_liquidity_mining\" >What is Yield Farming or Liquidity Mining?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes\/#how_does_liquidity_mining_work_for_compound\" >How does liquidity mining work for Compound?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes\/#how_can_i_%e2%80%9ccultivate%e2%80%9d_step_by_step\" >How can I \u201ccultivate\u201d? Step by step<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-compound-comp-all-in-5-minutes\/#how_is_compound_%e2%80%9cmining%e2%80%9d_at_present\" >How is Compound \u201cmining\u201d at present?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>Previously, we talked about the great promise and huge potential of\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-compound-the-complete-guide\/\">Compound\u2019s project<\/a>\u00a0f<strong>or lending your cryptocurrencies and decentralized financial markets.\u00a0<\/strong><\/p>\n<p>Certainly, we can briefly define it as\u00a0<strong>a decentralized protocol, based on blockchain technology, that allows you to lend and borrow cryptocurrencies through smart contracts.<\/strong><\/p>\n<p>It was founded by Robert leshner and Geoff Hayes\u2019 Compound Labs Inc. project in 2017.<\/p>\n<p>Of all this, one interesting element is its COMP governance token,\u00a0<strong>which revolutionizes the way crypto exchanges reward their users<\/strong>. This is because to earn COMP, you must\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-the-liquidity-of-a-cryptocurrency\/\">provide liquidity<\/a>.<\/p>\n<p>Therefore, we can deduce that the\u00a0<strong>Compound protocol fits into one category<\/strong>:\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yield-farming-of-cryptocurrencies\/\">Yield Farming<\/a>, a way in which you can make money with your investment.<\/p>\n<p>This is precisely what led to Compound\u00a0<strong>becoming one of the largest DeFi protocols in the world.<\/strong><\/p>\n<p>Without further delay, let\u2019s take a look at how we can increase our income and earn COMP with Compound by following simple steps.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_to_mine_compound\"><\/span>How to mine Compound?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>First of all,\u00a0<strong>it is important to clarify that COMP is not mined, so the process we know for\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/how-to-mine-bitcoin\/\">mining bitcoins<\/a><\/strong>, for example, does not apply in this case. This is mainly due to the way Compound works.<\/p>\n<p>Therefore,\u00a0<strong>to multiply your tokens and receive rewards<\/strong>, you must borrow and lend cryptocurrencies through the Compound protocol.<\/p>\n<p>In itself,\u00a0<strong>it is all about earning interest and getting as many COMP<\/strong>\u00a0<strong>rewards<\/strong>\u00a0as possible in the shortest possible time.<\/p>\n<p>Now, what does this have to do with the category you mentioned at the beginning?<\/p>\n<p>To understand this, let\u2019s review\u00a0<strong>what yield farming is<\/strong>.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"what_is_yield_farming_or_liquidity_mining\"><\/span>What is Yield Farming or Liquidity Mining?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-yield-farming-of-cryptocurrencies\/\">In a previous article<\/a>, we talked about it, but let\u2019s summarize it in a simple way to put it in context.<\/p>\n<p><strong>Yield Farming is a mechanism in which you bet or lend cryptos to produce high yields\u00a0<\/strong>or rewards in the form of additional cryptos.<\/p>\n<p>Consequently,\u00a0<strong>Yield Farming enables you to have remuneration for your investment<\/strong>. Therefore, your monetary participation\u00a0<strong>results in profits in the form of tokens that are distributed among the community.<\/strong><\/p>\n<p>The more cryptocurrencies you deposit and invest in the liquidity funds,\u00a0<strong>the value of the returns or rewards will increase.<\/strong><\/p>\n<p>Its main difference with the usual mining\u00a0<strong>we know is that users must not have a platform or software to mine<\/strong>. On the contrary, they must have an inventory of cryptocurrencies or blocked tokens.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_306510222\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img fetchpriority=\"high\" decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2-300x205.jpg 300w\" alt=\"\u00bfC\u00f3mo minar Compound (COMP)? Todo en 5 minutos\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP2.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_does_liquidity_mining_work_for_compound\"><\/span>How does liquidity mining work for Compound?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In general, liquidity mining\u00a0<strong>starts with a lender or liquidity provider (LP)<\/strong>\u00a0lending its own cryptoassets to a group of individuals.<\/p>\n<p>By virtue of this, liquidity funds are generated which are\u00a0<a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-a-smart-contract\/\">smart contracts<\/a>\u00a0programmed to:<\/p>\n<ul>\n<li><strong>Storing money\u00a0<\/strong>for loan purposes.<\/li>\n<li><strong>Generate income<\/strong>\u00a0for liquidity providers.<\/li>\n<\/ul>\n<p>From here,\u00a0<strong>users can lend, exchange or borrow cryptos through lenders.<\/strong>\u00a0Of course, loans carry interest, just like a bank loan.<\/p>\n<p>However, when you deposit a cryptocurrency with Compound to lend or exchange it,\u00a0<strong>Compound offers you cToken versions of the same coin in exchange, as a guarantee and an incentive.<\/strong><\/p>\n<p>Undoubtedly,\u00a0<strong>these rewards in COMP<\/strong>\u00a0(the Compound governance token)<strong>\u00a0are provided in a form equivalent to the value deposited or \u201cborrowed\u201d.<\/strong><\/p>\n<p>Now, the Compound protocol itself\u00a0<strong>functions as a money market that works within the Ethereum blockchain<\/strong>. These money markets are funds that allow you to invest without long-term risk.<\/p>\n<p>Consequently, different operations such as loans\u00a0<strong>can be performed using some of the main cryptocurrencies<\/strong>\u00a0used within the Ethereum blockchain.<\/p>\n<p>For each of these loans you make, you receive an interest rate. Likewise, in Compound,<strong>\u00a0participants can apply for loans by placing their assets to receive other cryptocurrencies or tokens.<\/strong><\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_can_i_%e2%80%9ccultivate%e2%80%9d_step_by_step\"><\/span>How can I \u201ccultivate\u201d? Step by step<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>One of the platforms that you can use to grow COMP is, for example, InstaDapp. What you should do within it, is simple:<\/p>\n<ul>\n<li>Create an account and\u00a0<strong>connect the application with your wallet<\/strong>\u00a0(either Metamask, Fortmatic or WalletConnect).<\/li>\n<li>In the Defi Assets option,\u00a0<strong>go to the Compound option.\u00a0<\/strong><\/li>\n<li>Then, from all the currencies you can deposit such as Ether (ETH), 0X (ZRK), COMP, Dai (DAI), Basic Attention Token (BAT), Augur (REP), among others. From these options, c<strong>hoose one and deposit it to start receiving returns<\/strong>.to know in which one is more viable,\u00a0<strong>you can check on Compound\u2019s website the market distribution (market distribution)<\/strong>.in this way, you will be able to know how many tokens they are granting per DAI or USDT, for example, either if you lend or if you save.<\/li>\n<li>Finally,\u00a0<strong>you just have to wait for the tokens to be provided automatically for your deposit.\u00a0<\/strong><\/li>\n<\/ul>\n<p>Of course, if you want to maximize the use of the platform and its distribution,\u00a0<strong>you can deposit in a savings account and at the same time borrow through the Compound website.<\/strong><\/p>\n<p><strong>However, this process is a bit more difficult,\u00a0<\/strong>so take it slow and experiment using the Compound platform.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div id=\"image_1803905305\" class=\"img has-hover x md-x lg-x y md-y lg-y\">\n<div class=\"img-inner dark\"><img decoding=\"async\" class=\"attachment-large size-large lazyloaded\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP.jpg\" sizes=\"(max-width: 768px) 100vw, 768px\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP-300x205.jpg 300w\" alt=\"\u00bfC\u00f3mo minar Compound (COMP)? Todo en 5 minutos\" width=\"768\" height=\"526\" data-srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP-300x205.jpg 300w\" data-src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2021\/07\/Como-minar-Compound-COMP.jpg\" data-sizes=\"(max-width: 768px) 100vw, 768px\" \/><\/div>\n<\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<h2><span class=\"ez-toc-section\" id=\"how_is_compound_%e2%80%9cmining%e2%80%9d_at_present\"><\/span>How is Compound \u201cmining\u201d at present?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Currently,\u00a0<strong>the total \u201clocked in\u201d value of the Compound protocol is at $600 million.<\/strong><\/p>\n<p>Likewise,\u00a0<strong>it is distributing around 2300 COMP per day<\/strong>\u00a0for an incredible value of over 660 thousand dollars.<\/p>\n<p>Of the 2,000 COMP,\u00a0<strong>the most benefited are the 0x, Basic Attention Token and ChainLink Token projects.<\/strong><\/p>\n<p>In addition,\u00a0<strong>a total of 918,604 COMPs have been distributed as of the date of publication and one of the projects that has received the largest distribution<\/strong>\u00a0over time has been USD Coin.<\/p>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<div class=\"is-divider divider clearfix\"><\/div>\n<p>Congratulations for making it to the end! You are an exemplary Bitnauta.<\/p>\n<p>It has been an article full of information, but we hope it has been useful for you to understand a little more about the crypto ecosystem.<\/p>\n<p>But\u2026oh\u2026wait, you were left wanting more? Don\u2019t worry!<\/p>\n<p><a href=\"https:\/\/www.bitnovo.com\/blog\/en\/\">In the Bitnovo blog<\/a>, we are working to have\u00a0<strong>the best information at your fingertips and in less time than a rooster crows.\u00a0<\/strong><\/p>\n<p>We also have\u00a0<a href=\"https:\/\/www.bitnovo.com\/cotizacion-criptomonedas\/\">our own website<\/a>\u00a0<strong>where we bring you closer to the world of cryptos in an easy and safe way.<\/strong><\/p>\n<p>Are you ready to take action? Perfect, see you on Bitnovo and on the blog in a new post.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Previously, we talked about the great promise and huge potential of\u00a0Compound\u2019s project\u00a0for lending your cryptocurrencies and decentralized financial markets.\u00a0 Certainly, we can briefly define it as\u00a0a decentralized protocol, based on blockchain technology, that allows you to lend and borrow cryptocurrencies through smart contracts. It was founded by Robert leshner and Geoff Hayes\u2019 Compound Labs Inc. [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":7832,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-10679","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-criptomonedas"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10679","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=10679"}],"version-history":[{"count":0,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/10679\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/7832"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=10679"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=10679"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=10679"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}