The Compound Governance Token (COMP) is a management token in Compound Finance's loan protocol based on smart contracts on the Ethereum network and allows you to borrow cryptocurrencies with the prior deposit of cryptocurrency assets as financial collateral. The protocol is decentralized, which means that it automatically sets interest rates for individual assets based on the law of supply and demand.
In addition, the token allows the owner to delegate voting rights to an address, wallet, other user, application or DeFi expert of his choice. Anyone who has min. 1% of the COMP token posted to his address can propose management activities. These are simple or complex sets of actions, such as adding support for a new asset, changing the asset protection factor, changing the market interest rate model, or changing any other parameter or protocol variable that the current administrator can modify.