> For the complete documentation index, see [llms.txt](https://uliquid.gitbook.io/uliquid_v1/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://uliquid.gitbook.io/uliquid_v1/supported-protocols/compound.md).

# Compound

Compound is a protocol on the Ethereum blockchain that establishes money markets, which are pools of assets with algorithmically derived interest rates, based on the supply and demand for the asset. Suppliers (and borrowers) of an asset interact directly with the protocol, earning (and paying) a floating interest rate, without having to negotiate terms such as maturity, interest rate, or collateral with a peer or counterparty. Each money market is unique to an Ethereum asset (such as Ether, an ERC-20 stablecoin such as Dai, or an ERC-20 utility token such as Augur), and contains a transparent and publicly-inspectable ledger, with a record of all transactions and historical interest rates.

The Uliquid V1 protocol currently supports Liquidation on the following Compound Versions:

| Protocol Version   | Supported Chains |
| ------------------ | ---------------- |
| Compound Version 2 | Ethereum         |