Coinbase has added the DeFi protocol Compound to its crypto tutorial program, enabling users to earn cryptocurrencies for learning on respective protocols. The exchange's move for incentivizing crypto lessons aims to outreach DeFi protocols for everyday users.
Users of Coinbase can now get a detailed guide on the Compound and COMP Tokens, one of the first DeFi tokens to enter the decentralized governance space. The exchange had previously added the Compound for trading and purchase in July 2020.
Coinbase Earn Program includes a series of guided tasks teaching users to earn interest and rewards while participating in the decentralized governance of the DeFi protocol. Previously, the exchange gave out lessons on loan service MakerDAO and decentralized exchanges Kyber Network and 0x.
The addition of the Compound into its crypto tutorial program is an effort to attract DeFi token enthusiasts. Even though completing COMP lessons adds up to only less than $10. Its real value comes from learning how to interact with DeFi protocols and the potential to be your own bank.
DeFi protocols use automated codes called smart contracts to execute financial processes usually handled by a centralized banking entity. Decentralized governance means no one person or group can control how smart contracts execute.
The Compound was one of the first DeFi projects to hand over control from its developer team to its community of users and supporters. The platform enables its users to deposit cryptocurrencies as interest or as a collateral for generating loans.
DeFi users have deposited more than $850 million worth of crypto vaulation into Compound. As of yet, more than 5,600 users have taken loans using the platform.
Meanwhile, COMP tokens are also used as voting rights to decide on the future development of Compound. The tokens are earned by depositing the cryptocurrency collateral or taking out loans from the platform.