A visual guide to how Compound works

Hi Reddit, I recently wrote a blog post about Compound to help me learn how the protocol works. I tried to keep it as ELI5 as possible so it’s full of drawings and clocks in at a 6th grade reading level. End to end it’s about a 5 minute read time.

If you know anyone who’s trying to wrap their heads around how defi and crypto please share, happy to answer any questions they have in the Twitter thread below.


[Blog post](

What do you think?

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  1. To borrow, users deposit ctokens but where do they get the ctokens to deposit? Or do they mint the ctokens? I’ve never borrowed from compound, would really appreciate an answer!

It is pretty obvious to me what the owls are now…

Transferring BNB to Nano X