COMP is an ERC-20 token built on the Ethereum blockchain that functions as the governance token of the decentralized finance (DeFi) platform Compound. According to the Compound team, the purpose of the token is to bring Compound towards full decentralization, removing the original developers of Compound as a point of failure for the protocol. Compound, which is one of the most popular protocols in the blossoming DeFi space, allows users to either borrow their crypto assets or lend them in order to earn interest. The protocol supports a number of Ethereum-based assets, including ETH and the USDT stablecoin. The process of lending and borrowing on Compound is facilitated in its entirety through smart contracts running on the Ethereum blockchain, resulting in a trustless system.