Coinbase and a16z-Backed Compound Launches Platform for Shorting Cryptocurrencies
San Francisco-based startup Compound announced this week that its platform, which allows individuals and institutions to earn interest on their crypto by lending it to traders looking to take out short positions, has officially gone live.
Compound is officially live:https://t.co/KYLRNdeduv
— Compound Labs (@compoundfinance) September 27, 2018
According to the announcement, individuals, institutions and applications can now easily earn interest or borrow crypto assets without directly negotiating with a counterparty through a new system of money markets that allow for dynamic borrowing interest rates. This system automatically adjusts with the ever-changing crypto market conditions.
Now, users can leverage the extensively tested and audited Compound platform to take out short positions on the following cryptocurrencies: Ether (ETH), 0x (ZRX), Basic Attention Token (BAT), and Augur (REP).
“Blockchain assets are novel and exciting, but they lack the most fundamental financial infrastructure — efficient interest rates,” said Compound’s Founder and CEO Robert Leshner in a statement accompanying the announcement. “Over time, hundreds of trillions of dollars of assets will be tokenized, but the institutions that deploy them will require the usefulness of traditional financial markets — today’s launch is just the first step.”
Compound first made headlines when it became the first public investment by Coinbase Ventures, which launched last April. Coinbase was one of the 8 investors in the $8.2 million seed round, which also included names like Andreessen Horowitz and Polychain Capital.
Disclaimer: This article’s author has cryptocurrency holdings that can be tracked here. This article is for informational purposes only and should not be taken as investment advice. Always conduct your own due diligence before making investments.