This function returns a boolean indicating whether or not the protocol withdraw functionality is presently paused. This function returns a boolean indicating whether or not the protocol transfer functionality is presently paused. This address has the power to pause supply, transfer, withdraw, absorb, and buy collateral operations within Compound III.
Set Governor
No one interacts with the cEther contract for 3 Ethereum blocks. The Compound protocol has been reviewed & audited by OpenZeppelin and ChainSecurity. They detail the taxpayer relief act of 1997 definition protocol deployment process, construction of new features, and code examples for implementing external apps that depend on Compound III as infrastructure. The following developer guides and code repositories serve as resources for community members building on Compound. It allows accounts to bulk multiple operations into a single transaction.
cUSDCv3 Implementation
Within our compound interest calculator results section, you will see either a Rate of Return (RoR) or Time-Weighted Return (TWR) figure for your calculation. You can include regular withdrawals within your compound interest calculation as either a monetary withdrawal or as a percentage of interest/earnings. Let’s cover some frequently asked questions about our compound interest calculator. Note that you can include regular weekly, bi-weekly (fortnightly), monthly, quarterly or yearly deposits in your calculations with our compound interest calculator at the top of the page.
- Historical interest rates can be retrieved from the MarketHistoryService API.
- Simply enter your principal amount, interest rate, compounding frequency and the time period.
- A return value of false does not necessarily imply that the account is presently liquidatable (see isLiquidatable function).
- Once the protocol reaches this amount of reserves of base asset, liquidators cannot buy collateral from the protocol.
- Global indices for supply and borrow are unsigned integers that increase over time to account for the interest accrued on each side.
- This function returns a boolean indicating whether or not the protocol transfer functionality is presently paused.
Is Withdraw Paused
To find the number of underlying tokens that can be redeemed for cTokens, multiply the number of cTokens by the above value oneCTokenInUnderlying. Please join the #development room in the Compound community Discord server; Compound Labs and members of the community look forward to helping you build an application on top of Compound.
Interest calculation for 5 years
So, let’s now break down interest compounding by year, using a more realistic example scenario. We’ve discussed what compound interest is and how it is calculated. If you’d prefer not to do the math manually, you can use the compound interest calculator at the top of our page.
This function allows governance to withdraw base token reserves from the protocol and send them to a specified address. This function sets the Comet contract’s ERC-20 allowance of an asset for a manager address. This function sets the maximum amount of an asset that can be supplied to the protocol. This function updates the liquidation collateral factor for an asset in the protocol.
Borrowing Assets from the Compound Protocol
Now that you understand how powerful compound interest can be, let’s break down how it’s calculated. Instead, we advise you to speak to a qualified financial advisor for advice based upon your own circumstances. We can’t, however, advise you about where to invest your money to achieve the best returns for you. Three simple strategies to consider when doing your long-term financial planning.
ERC-20 Approve Manager Address
As you compare the compound interest line to those for standard interest and no interest at all, you can see how compounding boosts the investment value. We’ll use a 20 year investment term at a 10% annual interest rate (just for simplicity). An account’s initial borrow size must be equal to or greater than this value.
Protocol Contracts
- If you’d prefer not to do the math manually, you can use the compound interest calculator at the top of our page.
- If you are investing your money, rather than saving it in fixed rate accounts, the reality is that returns on investments will vary year on year due to fluctuations in interest rates, market conditions, inflation, and other economic factors.
- Accounts can also earn interest by supplying the base asset to the protocol.
- This means total interest of $16,532.98 and a return on investment of 165%.
- The configurator deploys implementations of the Comet logic contract according to its configuration.
The effective annual rate (also known as the annual percentage yield) is the rate of interest that you actually receive on your savings or investment after compounding has been factored in. Simply enter your principal amount, interest rate, compounding frequency and the time period. To illustrate the effect of compounding, let’s take a look at an example chart of an initial $1,000 investment. This compounding effect causes investments to grow faster over time, much like a snowball gaining size as it rolls downhill. Use our free compound interest calculator to evaluate how your savings or investments might grow over time, with or without regular contributions.
The Compound protocol contracts use a system of exponential math, Exponential.sol, in order to represent utilities expense fractional quantities with sufficient precision. We believe that size, visibility, and time are the true test for the security of a smart contract; please exercise caution, and make your own determination of security and suitability. All contract code and balances are publicly verifiable, and security researchers are eligible for a bug bounty for reporting undiscovered vulnerabilities.
Update an Existing Asset
To generate the proper Comet Interface ABI (CometInterface.sol), compile the Comet project using yarn compile. The v3 general instructions for forms w proxy is the only address to be used to interact with a Compound III instance. For documentation of the Compound v2 Protocol, see docs.compound.finance/v2. Historical interest rates can be retrieved from the MarketHistoryService API.
This function sets the official contract address of the Compound III protocol pause guardian. This function sets the official contract address of the Compound III protocol Governor for subsequent proposals. It can be viewed at v3-additional-grants.compound-community-licenses.eth when the browser network is set to Ethereum Mainnet.
I hope you found this article helpful and that it has shown you how powerful compounding can be – and why Warren Buffett swears by it. The TWR gives you a clearer picture of how your investment might have performed if you hadn’t made extra deposits or withdrawn funds, allowing you to better assess its overall performance. We calculate it by taking the Initial investment figure away from the Final value and dividing the resulting figure by the Initial investment. The Rate of Return (RoR) reflects the percentage return on your investment over the entire investment term.
This function returns the minimum borrow balance allowed in the base asset. This function returns the current balance of a collateral asset for a specified account in the protocol. This function can be used to supply collateral, supply the base asset, or repay an open borrow of the base asset. The base asset can be borrowed using the withdraw function; the resulting borrow balance must meet the borrowing collateral factor requirements. Collateral can only be added if the market is below its supplyCap, which limits the protocol’s risk exposure to collateral assets.
There is no underlying contract for ETH, so to do this with cETH, set underlyingDecimals to 18. The cToken Exchange Rate is scaled by the difference in decimals between the cToken and the underlying asset. The Compound protocol contracts use a system of exponential math, ExponentialNoError.sol, in order to represent fractional quantities with sufficient precision.
