6.0.1. How to Connect Your Wallet to Compound Protocol
For you to lend or borrow money (cryptos) from the Compound Protocol, the first thing to do is to have an Ethereum wallet with which you connect to the protocol.
If you don’t have an Ethereum wallet, you can set up a Metamask wallet, which is one of the most popular wallets available. See the lectures in Course 4.
After you have set up your Ethereum wallet, you can now connect it to the Compound Protocol by doing the following:
Step 1: Login to Compound dashboard: app.compound.finance
This will prompt you to connect your Ethereum wallet.
Step 2: Select the wallet you want to use (in this case Metamask) and click on it. You can also click on “connect wallet” to select the wallet you want to use.
If your wallet is locked, you will be prompted to unlock it by typing in your login details.
Once you have done these, your wallet will be linked to Compound dashboard.
Make sure your wallet contains at least 0.05 Ethereum.
Step 3: Once you have connected your Ethereum wallet to the Compound dashboard, you will see the following:
1. General section:
This contains the followings:
(a). Your Ethereum wallet in the top-right of the screen.
(b). Your Comp Balance (shown only by the Comp logo) next to your connected Ethereum wallet.
(c). Vote – where you can use your governance token, COMP, to vote for changes in the protocol
(d). Dashboard, which is the landing page when you have connected your Ethereum wallet
(e). Compound – this is the home from which you can access:
• Market – this contains all the assets for lending and borrowing in the Compound Protocol
• Governance – this is where you see your voting power
• Developers – this area is for developers that want to build applications to interact with Compound Protocol
• Prices – this contains the assets and their prices in the Compound Protocol
• Docs – this is where you can read and educate yourself about the Compound Protocol and some DeFi activities.
2. Lending section
Compound Protocol named this section “Supply,” and it is located on the left side of the dashboard.
It contains:
(a). Supply Balance – this gives the balance of cryptos in your lending portfolio
(b). Supply Market – This is displayed in four columns:
• Asset – this shows all the available crypto assets on Compound protocol that you can add to the liquidity pool.
• APY – for each asset, you will see its lending Annual Percentage Yield (APY)
• Wallet – this shows the equivalent displayed quantity of asset
• Collateral – under this column is a button for each asset, and it is where you enable or disable an asset to be used as collateral. The button is located at the right side of each asset in the Supply Market.
(c). Net APY – this contains all the interest you have earned and/or paid and the amount of COMP you have accumulated.
3. Borrowing section
Compound Protocol named this section “Borrow,” and it is located on the right side of the dashboard.
It contains:
(a). Borrow Balance – this gives the balance of cryptos in your borrowing portfolio.
(b). Borrow Market: This is displayed in four columns:
• Asset – this shows all the available crypto assets on Compound protocol that you can borrow from the liquidity pool.
• APY – for each asset, you will see its borrowing Annual Percentage Yield (APY)
• Wallet – this shows the equivalent displayed quantity of asset
• Liquidity – this shows the total value of the borrowed asset.
(c). Borrow Limit – this shows the maximum value of assets you can owe the protocol. On the Dashboard, just below the NET APY, you will see a displayed meter that tracks what portion of your Borrow Limit you’ve used.
