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How to Borrow \u0026 Lend Crypto on Compound Finance (Easy Guide)Compounding works with the cTokens that lenders get for their investments in the protocol. It is these ERC tokens that appreciate in value from the accrued. Unlike how a modern bank operates, Compound is more similar to a mutual lender, where depositors mutually own the economic benefits of the protocol, like how a. Compound has launched a new version of its decentralized finance (DeFi) lending platform, Compound v3. The limited production release.
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