Hello, dear sirs and madams who read this post. Compound and Aave were treated as similar protocols. But today I am going to prove the opposite.

MM- Money market or lending/borrowing protocol.

WOOF! had an opportunity to work and contribute to the Compound Finance protocol. Such experience gave us an unmeasurable understanding of how LB protocols work under the hood, which allowed us to write this post.

In our world, where the financial system has existed for a hundred years everything seems relatively clear. You come into the bank, provide your personal data, and obtain a loan you would use for your purposes. In this case, the government guarantees banks to find you and seize all your property. Meanwhile, you are “relatively anonymous” in web3. 

I used the term "relatively anonymous" since RPC providers could track your location when you send transactions or you could use services that require login with your wallet and then use cookies and other information.

In the crypto world, you have assets like ETH that have a specific price. Cryptocurrency is similar to your assets in real life. Instead of coming to the bank, you use MM protocol to provide or borrow liquidity (liquidity is a smart synonym for crypto assets)

In the real world, we have 2 headliners in fiat transfering - Visa and Mastercard. The same in crypto - Compound and Aave are bosses in MM.

Compound operates by allowing users to deposit assets as collateral, securing their ability to borrow base assets like USDC, ETH, and soon USDT. However, it's important to clarify what collateral means in this context. Collateral refers to assets provided by users to secure their borrowings; it acts as a form of security for lenders. While collaterals themselves do not earn interest, they are vital for accessing liquidity within the protocol.

Aave has a different but similar to the Compound concept. In Compound, you bring collateral to take a loan, collateral goes in a separate “safe place”(pool) which allows the protocol to liquidate if the collateral price significantly drops. As for Aave, collaterals are not going to a separate “safe place” but can be borrowed by other users for other collateral. This means that even if you borrow, you still can earn fees because your collateral will be borrowed by someone else.

Overall, while both Compound and Aave serve as cornerstones of DeFi MMs, their differing approaches to collateralization and asset availability highlight the nuances within the decentralized finance landscape.

Compound always looking for involving new users with high APRs. The protocol has a Reward contract which encourages users to provide and borrow with a COMP token. 

Compound has COMP governance token whereas Aave has Aave as a governance token. Both of them have a similar utility - access to the DAO to define the direction of the growth. Governance provides a proposal pipeline where new initiatives could be deployed fully on-chain.

Both protocols are open source. However, it is not that easy to just have a brilliant idea and implement it using PR. Here is the plan for how to make the process better:

Both of the protocols have pros and cons. AAVE is preferable for users, who want to earn rewards for providing collaterals, but is a bad choice for those, who want to borrow, as 1. it has a higher borrow APR than Compound and 2. The fee is charged in collaterals, which is more valuable than stables. In contrast, Compound finance does not have fee rewards for collaterals but suggests better conditions for borrowers. Also, the Compound provides extra rewards in the COMP token, which decreases the borrow APR and increases the supply APR.

Compound and Aave were treated as similar protocols. Today you will know the key differences between protocols to make an informed decision on where to invest.

Dmytriy Babenko

Compound VS Aave

Pasha Bergman is the CEO at WOOF! Doing his best to bring valuable content.

Looking to score leads, build connections, and snag deals at crypto conferences? We've been hitting these events for 7 years now, and let me tell you, the crypto space is a whole different ball game compared to stuffy enterprise conferences. Here's the lowdown to help you dominate your next crypto conference.


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Forget closing deals on the spot. Crypto conferences are all about building relationships. Everyone there is looking to connect, just like you. Here's how to make the most of it:

Leave the suit and tie at home. Crypto conferences are all about expressing yourself. Rock a unique and eye-catching style that will make you memorable. Bonus points for a signature accessory you wear to every conference.

Don't walk in blind. Most conferences list attendees online (think Mainnet NYC or Luma). See who's going and target the people you want to talk to. Let your network know you'll be there and spread the word on social media.

The real action often happens at side events! Look for them on Telegram groups, the conference website, Luma/Eventbrite, or ask around. Apply in advance and get insider tips from other attendees. Remember, many side events are free.

They say you're six handshakes away from anyone. Don't just chase leads, find well-connected people and become friends. Introductions are way more powerful than a cold approach, even if the person introducing you just met you.

Get everyone's contact info! Snap a pic together for easy recall later. After each conversation, jot down a quick summary and their details in a dedicated chat or CRM. An assistant can even help you quickly assess each person's potential value. Take notes on their interests, challenges, and even personal details (like their dog's name!).

Thinking of sharing your expertise with the world? Apply to speak at the conference!  Reach out to the organizers well in advance with a killer presentation that's clear, concise, and showcases your problem-solving prowess. Focus on use cases, solutions, and addressing audience pain points. Don't forget a scannable QR code for your contact info, and leave time for Q&A.

Turn those connections into gold! Make a list of everyone you met, research them, and add them to your CRM. Analyze their needs and craft a targeted offer. Reference your conversation notes to personalize your outreach, and schedule calls to showcase your value proposition.

By following these tips, you'll transform crypto conferences from overwhelming events into prime networking grounds. Go forth, connect, and dominate the crypto dev world!

Looking to score leads, build connections, and snag deals at crypto conferences? Read and you will know how to crash any conference with outstanding efficiency.

You can't add days to your life, but you can add life to your days.

WO OF!

Writing

Compound VS Aave

How to attend crypto conferences 101