Compound V2

Compound V2 is an updated version of the Compound protocol, which is a decentralized finance (DeFi) lending and borrowing platform built on the Ethereum blockchain. Compound V2 was launched in May 2020 and introduced several new features and improvements over the original version of the protocol.

One of the key improvements of Compound V2 is the introduction of cTokens, which are ERC-20 tokens that represent users' balances in the Compound protocol. These tokens can be traded or used as collateral in other DeFi applications, and they accrue interest in real-time based on the interest rates of the underlying assets.

Another important feature of Compound V2 is the introduction of a new algorithm for determining interest rates, called the "Compound Interest Rate Model". This algorithm takes into account factors such as supply and demand for each asset, and dynamically adjusts interest rates to ensure that the platform remains stable and efficient.

Compound V2 has become one of the most popular DeFi platforms in the cryptocurrency industry, with billions of dollars in total value locked in its platform. It provides users with an easy way to lend and borrow cryptocurrencies, while also offering innovative features and improvements over the original version of the protocol.