Leading cryptocurrency exchange Binance has announced that it will be launching a derivative product for Compound’s governance token, COMP.
Announcing the development in a blog post today, Binance stated that its latest perpetual contract would be based on the COMP token against USDT (COMP/USDT). The product would commence trading on June 30, 2020, at 09:00 AM (UTC).
Binance users can choose to trade between 1x and 50x leverage for the COMP/USDT future contracts depending on the notional value of a user’s position. Thus, the more position a user has, the lower the leverage allowed.
A perpetual contract is a derivative product that is almost similar to traditional future contracts. However, the difference between both futures is that the former does not expire nor settles.
Coinfomania reported that Compound Protocol’s governance token COMP is one of the most successful cryptocurrencies since the good days of 2017 ICO. Since the first units of COMP were issued to Compound users on June 16, 2020, the token has spiked from a $0 market cap to a stunning $700,318,049.
The token was launched to change the Compound Protocol’s governing approach from being dominated by the founding members to community-led governance, hence the name “a governance token.” COMP gives community members the right to be more involved in crucial decision-making, such as protocol upgrades, and new assets to be added to the protocol.
At the release of the first batch of COMP, no fixed price was attached to the token, however, the COMP’s value soared above $240 within the first week of its launch.
More exchanges list COMP
Its significant growth within a short period has seen COMP listed on several exchanges, leading to the rise of the token’s value.
San-Francisco-based exchange, Coinbase, had listed COMP on its Pro platform with the exchange promising few trading pairs for the token, including COMP/USD and COMP/BTC. The listing saw the COMP’s price more than double up to the tune of $427, but the price has retracted and currently trading at $234.
More recently, popular crypto exchange OKEx announced today that it has listed COMP for spot trading against BTC and USDT.