Compound outstanding debt grows 400% over 3 days as COMP distribution begins

Quick Take

  • Money market protocol Compound began the distribution of its governance token, COMP, on June 15
  • With a market price of ~$200, COMP offers borrowers and lenders close to $600,000 in subsidies per day 
  • Outstanding supply and debt have since grown more than 210% and 470%, respectively, as speculators seek to participate in the distribution
  • While the protocol’s key performance metrics are up across the board, it remains unclear whether momentum can be sustained as competing protocols begin to issue equivalent subsidies 

Compound continues to show signs of strength: originations and outstanding debt are up double-digits year-to-date

Quick Take

  • Ethereum-based money market Compound continues to show strong signs of traction: originations and outstanding debt are up 44% and 76% year-to-date, respectively
  • DAI and USDC continue to be the most sought-after assets, making up 54% and 43% of outstanding debt, respectively
  • Compound’s insurance fund, which may serve as a future source of earnings for Compound governance token holders, is approaching $300k