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How-To GuideLendingIntermediate

How to Use Compound

Lend and borrow on Compound V3. Earn yield or access liquidity without selling.

Estimated reading time15-20 minutes6 stepsPrerequisites: Collateral assets, ETH for gas

Quick Overview

1
Go to Compound
2
Choose Market
3
Supply Collateral
4
Borrow USDC
5
Monitor Position
6
Repay and Withdraw

How to Use Compound

Compound is a pioneer in DeFi lending. Compound V3 (Comet) offers simplified lending with major assets as collateral.

Compound V3 Features

Improvements over V2:
  • Single borrow asset per market
  • Better liquidation protection
  • Simpler interface
  • Lower gas costs

Current Markets

MarketCollateralBorrow
. . . .. . . . . .. . . .
USDC.e (Arbitrum)ETH, wstETHUSDC
USDC (Ethereum)ETH, wBTC, COMPUSDC

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Step-by-Step Instructions

1

Go to Compound

Visit app.compound.finance and connect wallet.

Tips

  • Available on Ethereum and Arbitrum
2

Choose Market

Select USDC market on your preferred chain.

Tips

  • Arbitrum has lower gas fees
3

Supply Collateral

Deposit ETH, wstETH, or other accepted collateral.

Tips

  • Higher collateral = safer position
4

Borrow USDC

Borrow against your collateral. Watch your health factor.

Warnings

  • Keep borrow well below max for safety
5

Monitor Position

Check liquidation price and adjust as needed.

Tips

  • Add collateral if price drops
6

Repay and Withdraw

Repay borrowed USDC to withdraw your collateral.

Tips

  • Repay a bit extra to cover accrued interest

Frequently Asked Questions

Related Resources

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