Coinbase Pro Adds Support For DeFi Project Compound’s Governance Token, COMP
Major US-based crypto exchange Coinbase Pro has stated it is now supporting COMP which is the token that is powering Compound, the decentralized lending protocol.
In a press statement released on Thursday, Coinbase clarified that trading for the COMP token will kick off on June 23 but will depend on whether the set liquidity standards are met. Also, users will be allowed to deposit COMP on June 22.
According to Coinbase, after enough supply of COMP has been attained within the platform, COMP-USD, as well as COMP-BTC order books, will commence in phases, starting with post-only mode then going on to full trading when the requisite metrics are met.
The compound is Ethereum-based decentralized finance (DeFi) platform that enables its users to borrow tokens as well as deposit them to earn or pay interest. COMP is the token which governs the Compound platform.
Currently, Compound is ranked as the second most commonly used DeFi protocol, and $276 million worth of crypto is at the moment being used within the protocol.
COMP token was launched on June 15 and has so far amassed about $1.1 billion in market cap which essentially makes it the most valuable DeFi token within a week after introduction.
Coinbase clarified that the token is not yet available in its main consumer platform. However, most of the tokens are launched in Coinbase’s consumer platform after being introduced on Coinbase Pro.
Coinbase also revealed that it holds an unspecified amount of COMP tokens after investing in Compound back in 2018. The exchange also clarified it has no intention of dumping its stash of tokens soon.
Coinbase stated that the listing of COMP tokens on its Pro platform was in line with its commitment to provide a wide array of assets for trading within its platform. The exchange also stated that plans are underway to support other assets that will meet its listing process.