Compound

The Compound Governance Token (COMP) plays a crucial role in the Compound Finance lending protocol. Its primary function is to facilitate governance by enabling owners to delegate voting rights to any address they choose, be it their wallet, another user, an application or a DeFi expert. The unique aspect of this system is that participation in Compound governance doesn't require COMP ownership but can be achieved through delegated votes.

One key feature of COMP is its ability to initiate governance actions. Any address with 1% of COMP delegated can propose such actions. These could range from adding support for a new asset, adjusting an asset's collateral factor, modifying a market's interest rate model, or even altering other parameters or variables within the protocol that are within the purview of the current administrator.

In summary, COMP brings an innovative approach to decentralized finance by democratizing protocol governance and allowing diverse stakeholders to have a say in key decisions.

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