Compound: How Decentralized Finance Quietly Redefined the Future of Lending
When people talk about crypto, they often think of speculation-not systems. But every few years, a protocol comes along that shifts the conversation from price charts to real utility. Compound did exactly that. It took one of the oldest financial concepts- lending and borrowing- and rebuilt it from the ground up, without banks, paperwork, or gatekeepers. The result? A glimpse into how programmable finance could transform not just crypto, but how products and users interact with value itself. The Big Idea: Money Markets on Autopilot At its core, Compound is a decentralized lending protocol that lets users supply or borrow crypto assets directly from smart contracts. Think of it as an autonomous money market where interest rates adjust algorithmically based on supply and demand. Unlike traditional lending platforms, there’s no credit check, no bank intermediary, and no opaque decision-making. Every transaction, collateral ratio, and rate adjustment happens transparently on-chain. Th...