The crypto exchange, FTX, will list the Compound's digital assets' COMP' and ‘cUSDT' this week as the DeFi market continues to grow.
The exchange will also launch derivatives based on the two digital assets, although its U.S market will be limited to spot trading. The move marks a significant milestone for Compound, which set out to compete with the likes of MakerDAO for the DeFi crown ship.
Notably, COMP is the governance token for Compound's protocol, while the cUSDT is the USDT equivalent within this ecosystem. The two tokens have spurred growth within Compound's DeFi protocol in recent days, given that its users began earning COMP for lending and borrowing from June 15. Consequently, Compound's Total Locked Value (TVL) has grown three-fold to hit $300 million within the past week.
COMP and cUSDT Spot and Derivative Instruments
As the crypto market evolves, financial market gurus have also made an effort to replicate some of the most complex assets in the emerging digital asset economy. Crypto derivatives are some of the instruments that fall into this category. Nonetheless, digital currency exchanges like FTX and Binance have quickly adapted to accommodate the growing market.
On Compound's derivatives, FTX will add leveraged USD/USDT tokens, quarterly cash-settled futures, and perpetual swaps. The latter asset class involves futures contracts based on COMP tokens with no expiry date. Given this progress, FTX CEO, Sam Bankman-Fried, has said that Compound is actually doing quite well and could soon rival MakerDAO at a significant level:
“[COMP] is a really exciting project and a huge step forward for DeFi; also, the token is generating a large amount of attention right now… One thing the markets are implying right now is that Compound is making a serious run for that crown.”
COMP Token Listings
This Compound protocols native token, COMP, was issued earlier in the week and seemed to be doing pretty well. Its first listing was on Uniswap and will soon be added to Coinbase as per an announcement on June 18.
On the FTX exchange, COMP's index price will be an average of four trading pairs, namely COMP/USD, COMP/USDT, and COMP/ETH. Bankman-Fried has since highlighted that FTX is excited by these listings given the diversification aspect:
“We're excited to give our users access to Compound's products. It's a huge step forward for DeFi and also an active project right now.”