Licensee shall do nothing which would jeopardize the good will or reputation of MPP or Pfizer or the reputation of the Compound, Product and/or Licensed Product. With compound interest, interest is earned on both the original principal and accumulated interest. Compound Finance is a trailblazing decentralized finance protocol enabling anyone to lend or borrow cryptocurrency assets. Nothing in this Agreement shall provide a right to Vend, Retail, donate, offer for sale, sell or otherwise distribute the Compound, Product or Licensed Product outside the Territory for further offer for sale, sale, donation or distribution of the Compound, Product or Licensed Product outside or for use outside the Territory.įor clarity, licenses granted under Sections 2.1 and 2.2 of this Agreement do not include a license to processes or procedures for the manufacture, production, packaging, labeling, warehousing, and quality control testing of the Compound, Product and/or the Licensed Product that are not expressly included in the Patents and/or Licensed Know-How. Licensee agrees that it will manufacture the Compound, Product and Licensed Product in a manner consistent with (a) WHO Prequalification standards or (b) the standards of any SRA. Compound Annual Growth Rate (CAGR) measures the annual growth percentage of a financial indicator (such as Share price, turnover, EBITDA or Net profit). It occurs when you reinvest interest rather than take it as a payout. In other words, compound interest is interest on interest. No license or right is granted by implication or otherwise with respect to the Compound, Product and/or Licensed Product, except as expressly granted herein. Compound Interest: A method used to calculate interest paid on both the principal and on accrued interest. Importantly, borrowers can get liquidated if the asset they borrow increases in value and becomes more valuable than the posted collateral.Examples of Compound Product in a sentence Users who lend assets to the protocol, can take out a loan in any other cryptocurrency that Compound offers, up to the amount of collateral posted. The more liquidity in a market, the lower the interest rate. They are allowed to borrow cryptocurrencies supported by Compound at a percentage of the posted value.Ĭompound rewards lenders with COMP tokens based on the amount of cTokens held in their wallet based on a varying interest rate dependent on the available supply of that asset. means a pharmaceutical product (in any specific dosage form or mode of administration) that contains the Compound as an active. Borrowers – Anyone who posts collateral on Compound in the form of a cryptocurrency.Lenders – Anyone wishing to lend a cryptocurrency on Compound can send their tokens to an Ethereum address controlled by Compound to earn interest.The two main users of the platform include: As of 2020, over $500 million in assets were locked in the Compound protocol, according to the data site DeFi Pulse.Ĭompound connects lenders and borrowers using a combination of smart contracts running on Ethereum and incentives paid in cryptocurrency. One way to think about the compound growth. While complex, the model has so far proved adept at attracting users and encouraging other DeFi cryptocurrencies to adopt its model. We can define compound growth as the average rate of growth experienced by an investment over a multi-year period. Every time a user interacts with a Compound market (by borrowing, withdrawing or repaying the asset), they are rewarded with additional COMP tokens. To incentivize this activity, Compound uses another cryptocurrency native to its service, called COMP. This entire process is automatic and handled by the Compound code, meaning lenders can withdraw deposits at any time. Examples of cTokens include cETH, cBAT and cDAI.Įach cToken can be transferred or traded without restriction, but it is only redeemable for the cryptocurrency initially locked in the protocol. Compound interest is the addition of interest to the principal sum of a loan or deposit, or in other words, interest on principal plus interest. Once a deposit is made, Compound awards a new cryptocurrency called a cToken (which represents the deposit) to the lender. Lenders then earn interest on the assets they deposit. Put simply, Compound allows users to deposit cryptocurrency into lending pools for access by borrowers. When you borrow money from a bank, you pay interest. One of an emerging number of decentralized finance ( DeFi) protocols, Compound uses multiple crypto assets to provide this service, enabling the lending and borrowing required without a financial intermediary like a bank. Compound interest is the interest paid on the original principal and on the accumulated past interest. Compound is a software running on Ethereum that aims to incentivize a distributed network of computers to operate a traditional money market.
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