6.0.4. How to Withdraw Crypto from Compound Protocol
There are three kinds of withdrawals you can make from Compound Protocol:
(A). Withdrawal of Supplied Asset
Any crypto asset you supplied to the Compound Protocol can be withdrawn completely or partly at any time you want.
The crypto asset you supplied to the liquidity pool is evidenced by the amount of cTokens you received in your Ethereum wallet. The value of these cTokens is seen in the Supply Balance on the Compound dashboard whenever you connect your Ethereum wallet.
The longer you hold onto your cTokens, the more the value of those tokens appreciates. Let’s say you supply 1000 DAI to the Compound protocol, when the exchange rate is 0.020070; you would receive 49 825.61 cDAI (that is, 1000/0.020070).
If after a few months later, you decide it’s time to withdraw your DAI from the protocol and the exchange rate is now 0.021591, it means your 49 825.61 cDAI is now equal to 1075.78 DAI (that is, 49825.61 x 0.021591).
You could withdraw 1 075.78 DAI, which would redeem all 49 825.61 cDAI or you could withdraw a portion, such as your original 1000 DAI, which would redeem 46 315.59 cDAI (leaving 3 510.01 cDAI in your wallet).
You can withdraw your DAI from your Supply Balance, which is an accumulation of the Supply Interest and the cDAI that represents the number of DAI you have supplied. To do this, see “How to Withdraw Supply Interest from Supply Balance.”
Note that once you have withdrawn DAI from the Supply Balance, the amount of cDAI in your wallet will decrease proportionally.
In other words, when crypto funds such as DAI are withdrawn from the protocol, cTokens are redeemed behind the scenes for the corresponding quantity of the underlying asset.
(B). Withdrawal of Supply Interest from Supply Balance
The second kind of withdrawal you can make from Compound Protocol is the Supply Interest that has accrued to you in the Supply Balance. Note that the Supply Balance is an accumulation of the Supply Interest and the cTokens.
At any time, you canwithdraw any portion of your Supply Balance back to your Ethereum wallet. To Withdraw from the Supply Balance, here are the steps:
Step 1: Login to Compound dashboard at app.compound.finance and connect your Ethereum Wallet.
Step 2: Click on the asset in the Supply Market which you want to withdraw
Step 3: Select “Withdraw”
Step 4: Type in the amount you want to withdraw
Step 5: Click on “Withdraw.”
By completing these steps, you will see the cryptos deposited in your Ethereum Wallet.
(C). Withdrawal of the Distribution Interest
The third withdrawal you can make from Compound Protocol is the Distribution interest, which is seen at the Comp Balance. The distribution interest is earned as the COMP token.
You can withdraw all of the COMP tokens in your COMP Balance at any time by taking the following steps:
Step 1: Login to Compound dashboard at app.compound.finance and connect your Ethereum Wallet.
Step 2: Click the COMP Balance button at the top right corner
Step 3: Click the withdraw or claim button
Completing this action will withdraw all of your earned COMP to your Ethereum account.