A Step-by-Step Guide to COMP Mining and Claiming COMP Rewards

COMP is the governance token of Compound, a leading DeFi (Decentralized Finance) project on the Ethereum blockchain. With a total supply of 10 million tokens, 4.23 million COMP are distributed through a "lending-as-mining" model—rewarding borrowers and depositors on the Compound platform. Based on current mining rates, it will take approximately four years to fully distribute these tokens.

Why Mine COMP?

• High-Yield Opportunities: Lending typically offers higher returns than depositing.
• Dual Mining Options: Earn COMP by supplying assets (depositing) or borrowing.
• User-Friendly: TokenPocket wallet simplifies the process, from mining to claiming rewards.

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Prerequisites

Before mining or claiming COMP:

1. Switch to an ETH wallet in TokenPocket.
2. Ensure sufficient ETH for gas fees.

Method 1: Supply Mining (Deposit Assets)

Compound supports eight assets for mining:
✅ BAT | ✅ DAI | ✅ ETH | ✅ REP | ✅ USDC | ✅ USDT | ✅ WBTC | ✅ ZRX

Steps to Deposit ETH (Example):

1. Open Compound DApp:

   • In TokenPocket’s "Discover" section, search for Compound and select the DApp.

2. Enable ETH as Collateral:

   • Toggle the switch next to "Ether" → Click "Use ETH as Collateral" → Confirm the transaction.

3. Deposit ETH:

   • Enter the ETH amount → Click "Supply" → Approve the transaction.

Result: You’ll earn COMP proportional to your deposit.

Method 2: Borrow Mining (Lend Assets)

Borrowing limits depend on collateral value (e.g., borrow up to 75% of your deposited ETH’s worth).

Steps to Borrow USDT (Example):

1. Select "Tether (USDT)" in Compound’s borrow market.
2. Enter the USDT amount → Click "Borrow".
3. Confirm the transaction.

Note: Borrowing rates vary by asset.

Claiming COMP Rewards

Two methods to claim your COMP:

1. Manual Collection

• Navigate to "Voting" in Compound’s top-right menu.
• View "COMP Balance" (manageable tokens) and "Earned COMP" (pending rewards).
• Click "Collect" → Pay gas fees → Tokens appear in your wallet.

2. Automatic Claiming

• Perform any deposit/borrow/repay action with > 0.001 COMP earned.
• Rewards are auto-claimed, saving gas costs.

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FAQ

1. What’s the COMP distribution rate?

• COMP is distributed proportionally to lenders/borrowers based on platform activity.

2. Can I mine COMP without collateral?

• No. Borrowing requires collateralized assets (e.g., ETH).

3. How often are COMP rewards distributed?

• Rewards accrue in real-time but must be manually or auto-claimed.

4. Which wallets support COMP mining?

• TokenPocket, MetaMask, and other Web3-compatible wallets.

5. Are there risks to COMP mining?

• Yes. Smart contract vulnerabilities, market volatility, and gas fees apply.

Key Takeaways

• Mining Flexibility: Choose between depositing or borrowing.
• Cost Efficiency: Auto-claiming reduces gas fees.
• Long-Term Rewards: COMP’s four-year distribution ensures sustained opportunities.

Disclaimer: This guide is informational only. It does not constitute financial advice.

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