Compound’s earlier iterations employed a pooled-risk mannequin, which supported 9 cryptocurrencies, together with ether (ETH), dai (DAI) and tether (USDT). Beneath the previous mannequin, customers would deposit property into lending swimming pools, the place their property would earn curiosity. In trade for his or her deposits, lenders acquired cTokens, which represented the worth of their deposits. Utilizing these cTokens, the lender might then borrow as much as a sure proportion of the worth of their collateralized property in a distinct cryptocurrency.
