Compound V2: Fixed-Point Math
In this article we explain the fixed-point math behind Compound. Understanding this is a crucial stepping stone to understanding the rest of the calculations in the protocol. All the code reference...
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Compound V2: Tracking Interest with the Borrow Index
To build a lending protocol, you need a way to track how much debt each borrower owes as it accumulates over time. Compound tracks interest on a block-by-block basis, meaning debt accrues with each...
Compound V2: cTokens and the Exchange Rate
Compound lets users deposit tokens to earn yield. When you deposit, you receive a cToken in return that represents your position. For example, depositing USDC gives you cUSDC. You can think of a cT...
Compound V2: Introduction
Why Compound V2 Compound V2 came out in 2019, so you might wonder why I’m writing about it now. In my opinion, it is the best starting point for going deeper into DeFi mechanics. It covers a wide ...