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Benefit from Compound’s DeFi opportunities, using Kiln’s infrastructure
Compound
What is Compound?
Compound’s DeFi protocol enables users to lend and borrow a variety of cryptocurrencies by participating in a decentralized market where reward rates are automatically determined based on supply and demand. This allows users to earn rewards on their crypto holdings or take out collateralized loans without the need for intermediaries, thereby fostering a more efficient and transparent financial ecosystem.
Stablecoins on Compound provide attractive opportunities for risk-averse users to earn rewards. Users can deposit stablecoins for reward rates that are competitive with traditional savings accounts, but with the added benefit of being on a decentralized platform. Additionally, Compound offers unique features like the ability to switch between stable and variable reward rates and the use of stablecoins or other cryptocurrencies as collateral for borrowing other assets.
Why bringing DeFi to your users?
After staking, DeFi is the next source of digital asset rewards. Stablecoins are a $170 billion market and growing, but less than 4% of stablecoins natively earn interest for holders. In comparison, over 50% of PoS and dPoS assets are staked.
Kiln DeFi is the tech stack that enables integrators to seamlessly support and monetize DeFi in any Web3 product.
DeFi is the next step in your crypto earn offering after supporting staking. Diversify your rewards opportunities and benefit from service fees on your users’ stablecoin rewards.
Kiln Defi is:
- 1100% onchain
- 2Seamless
- 3Control your own pricing model
How can you offer Compound rewards with Kiln DeFi?
💡 You can start monetize Compound’s opportunities in less than a week with Kiln DeFi.
To start offering Compound DeFi yields using Kiln’s tech stack, follow these steps:
- Deploy your custom Kiln DeFi vaults
- Integrate in your UI in less than a week (see docs)
- Your users start earning supply rewards
Reach out to us if you need help to integrate Kiln DeFi.
What are the rewards associated with DeFi?
In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets a DeFi protocol such as Compound. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.
In DeFi protocols like Compound, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.
From 2.5% APY in a bear market to 22%+ during peak market activity, DeFi rewards like Compound’s can drive a significant additional source of rewards for integrators.
Why should you use Kiln DeFi to offer Compound rewards?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to earn rewards on their digital assets or integrate our tech stack into their products. The API-first platform supports fully automated rewards, data, and commission management.
With Kiln DeFi, our clients seamlessly access a wide range of protocols like Compound and assets without having to build commercial agreements and integrating different deposit/withdraw flows for each DeFi protocol.
Gain control with comprehensive reporting and monitoring of your Compound DeFi positions, rewards, and audited smart contracts.
Learn more about Kiln DeFi
Protocol card
Supported assets
USDT, USDC, USC.e, USDbC
Supported EVMs
Ethereum, Base, Arbitrum, Optimism, Polygon, Scroll
APR
2.5% to 22%
TVL
$2.1B+
Compound FAQ
What is Compound?
Compound’s DeFi protocol enables users to lend and borrow a variety of cryptocurrencies by participating in a decentralized market where reward rates are automatically determined based on supply and demand.
This allows users to earn rewards on their crypto holdings or take out collateralized loans without the need for intermediaries, thereby fostering a more efficient and transparent financial ecosystem.
What stablecoins or tokens are supported on Compound with Kiln DeFi?
Kiln DeFi supports all stablecoin assets available on Compound v3, including USDC, USDC.e, and USDbC.
What are the rewards associated with Compound and Kiln DeFi?
Rewards are based on the supply and borrowing demand for each asset. As the borrowing demand for an asset increases, the reward rate also increases. Check directly with Compound for the latest rates.
Is there a minimum amount of assets to lend on Compound?
You can supply any amount you wish, with no minimum or maximum limits. However, it's important to note that for very low amounts, the transaction costs may exceed the expected earnings.
Do the end users of the integrator maintain custody of their assets when lending on Compound?
No, lending on Compound means you will deposit your assets into their lending protocol (a smart contract) but only you have the right to withdraw your assets.
Is there a lockup period when lending assets on Compound?
No, you can withdraw your assets at any time, provided the lending pool has sufficient liquidity (i.e., it is not fully borrowed). If the pool lacks liquidity, you may need to wait for borrowers to repay their loans to free up funds.
It is a rare occurrence for a lending pool to lack liquidity, as in the event of limited liquidity borrowing rates are automatically adjusted upwards to encourage loans to be repaid.
How do I get started with Kiln DeFi?
Contact your account manager or complete our form to begin the Kiln onboarding process and access our suite of solutions.