BTSE welcomes three more ERC-20 tokens onto the exchange, further growing its range of quality digital assets available to traders.
- Compound (COMP)
- The Graph (GRT)
- UMA (UMA)
1. Compound (COMP)
COMP is the governance token of Compound, one of the mainstream lending DeFi protocols in the industry. Its lending services have been compared to those of Aave, also listed on BTSE.
Compound and COMP Token
Founded in 2017 with around $10.79 billion total value locked (TVL) on its platform to date, Compound is currently among the top 5 lending DeFi protocols. It allows users to earn interest on their cryptocurrencies by depositing them into different pools supported by the platform.
COMP is mainly used for empowering community governance of the Compound protocol. COMP holders can debate, propose, and implement changes through on-chain voting, similar to MKR for Maker protocol. Decisions open to voting include choosing which cryptocurrency to support, adjusting collateral factors, and how they want COMP to be distributed, among others. Aside from buying and trading on exchanges like BTSE, users can obtain COMP through liquidity mining by depositing assets or taking out a loan.
Compound is developing its own blockchain, Compound Chain, a distributed ledger of inexpensive storing and transferring value and liquidity between peer ledgers. While there is anticipation looking beyond the current “Gateway” prototype, Compound is working to address concerns from some regarding the chain, such as whether asset issuers would trust a Proof-of-Authority (PoA) chain over a fully decentralized Proof-of-Work (PoW) chain. Once the Compound Chain is ready, a new native token, CASH, will be launched on the chain for users to pay fees, while COMP will continue to govern the Compound platform and chain.
According to CoinGecko, at $347.51 on October 27, 2021, COMP has a market cap of around $2.12 billion and 0.08% market cap dominance. Its circulating supply is around 6.11 million tokens out of a maximum of 10 million.
2. The Graph (GRT)
GRT is the native token of The Graph, one of the leading indexing protocols in the crypto space. It helps to provide incentives and coordinate the work among four roles in the ecosystem – Developers, Indexer, Delegator, and Curator.
The Graph and GRT
Having its initial coin offering (ICO) in 2020, The Graph is a decentralized protocol for indexing and querying data from blockchains and networks, specifically for Ethereum and IPFS. It allows users to build and publish open APIs, also known as subgraphs, that can be queried with a standard GraphQL API to retrieve blockchain data.
This makes it easy for the users not to spend a lot of resources building customized servers and to ensure data credibility and security at the same time. Many DeFi platforms, including Uniswap and Synthetix, have started using GraphQL tools to provide their users with market information.
When developing cryptocurrencies, generally, developers would design an ideal ecosystem to give their tokens purposes and values. That includes characteristics such as trustless, immutable, and decentralized. Similar to it, The Graph’s native token, GRT, also has four characteristics to give the token value: Developers, Indexers, Curators, and Delegators. To participate in the network, users need to stake GRT tokens to perform their roles and earn fees in return, no matter what their roles are in the ecosystem.
The rise of The Graph has met the demand for easy access to historical market data for many DeFi platforms and attracted many investors, including Coinbase, MultiCoin, and DCG. This has made The Graph onto the watching list of many traders and investors.
At $1.04 on October 27, 2021, GRT has a market cap of around $5.18 billion and 0.19% market cap dominance, according to CoinGecko. Its circulating supply is around 4.95 billion tokens out of a maximum of 10 billion.
3. UMA (UMA)
UMA is the governance token of the Universal Market Access (UMA) protocol, which supports the creation of synthetic assets based on Ethereum. UMA holders have the ability to contribute to UMA protocol governance decisions.
What is the UMA Protocol?
The UMA protocol is a non-permissioned framework for creating artificial assets. That means just about anyone can develop a token tied to a fundamental data point as long as the data point is trustworthy and the token is satisfactorily overcollateralized with ERC-20 tokens, such as USDC, DAI, and ETH.
For instance, someone may utilize UMA to create a token that responds to DeFi’s TVL, enabling traders to go short or long on TVL for a set length of time. Also, UMA enables the development of valuable virtual assets by providing priceless DeFi contracts and decentralized oracle service to ensure the creation of fast, efficient, and secure derivatives on Ethereum.
UMA’s governance token gives token holders the ability to dictate crucial parts of the ecosystem, such as the types of deals that may access the ecosystem, authorized assets, critical system variables, and updates. UMA holders can also earn inflationary rewards if their votes belong to the majority consensus. In addition, UMA can be utilized to settle contractual issues that may arise as a result of the non-priced synthetic framework.
The UMA token, at $11.80 on October 27, has a market cap of more than $750 million and 0.03% market cap dominance, according to CoinGecko. Its circulating supply is around 63 million tokens out of a max supply of around 105 million.
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