The Compound project has suddenly become the talk of the hour in the crypto community, as the total value of the project has reached more than half a billion dollars suddenly and quickly.

Emphasizing the importance of decentralized finance and the importance of the Compound project that focuses and adopts decentralization and provides governance tokens, where COMP tokens can be used to vote on changes in the Compound protocol.

The COMP coin gained a significant bullish momentum as its price reached a high of $385 on June 23.

The huge rise in the value of the currency made many projects try to copy the success of the project and follow in its footsteps and launch their own governance codes.

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Very similar to Project Compound, Balancer Labs has released its own governance token that can be used to vote on changes.

The COMP Token Reaching New Record Highs reminded people of the ICO days.

Another interesting project is Curve.fi, which offers the possibility of automated market making. The project also saw a significant increase in size as people used the platform to convert stablecoins.

stated Mr. Michael Egorov, founder of Curve:

People start putting USDC as collateral on Compound, take USDT, swap Curve to USDC put as collateral on Compound and do it repeatedly up to 30 times to earn leveraged COMP.

With the rise in value of decentralized finance project tokens and other governance tokens, people needed to hedge their sometimes excessive positions.

This is where the FTX platform came forward and incorporated the tokens of the decentralized finance projects, in addition, the decentralized financial contract platform UMA launched a decentralized financial contract linked to COMP that gives the ability to short sell by securing Dai as collateral with the ability to earn COMP coins.

To appear as a better option to hedge against losses resulting from the fall of COMP tokens, the Opyn platform has appeared, which offers options related to COMP tokens.

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reported Opyn platform made the following statement:

You can protect yourself if the COMP tokens drop to $150 or less before July 3rd.

We provide protection and safety option against fluctuations and flash accidents.

When you buy protection, you are buying an oToken, which gives you the right to sell your coins (ETH, COMP) at the strike price regardless of its market price.

These oTokens avoid losses.

With other protocols releasing similar codes, the hype seems to be building.

As for the Compound project, things are going really well, with the total value locked into the protocol already hitting a new all-time high of $1 billion.

The same cannot be said for Balancer Labs as it has run into a lot of problems lately, as some users were able to exploit depositing random codes into the protocol to gain interest.

Earning interest on derivatives and all that DeFi projects offer is an emerging field today.

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However, some people are still not very optimistic about combination products and other similar products.

Adam Buck, co-founder and CEO of Blockstream, said:

Is it just me who sees it as a scam or is it a scam.

While many analysts have likened what is happening with the Compound project to being exactly the same as what happened with the initial coin offering, it takes time and its momentum ends.

But the hype around the Compound project has its reasons, as the project offers many revolutionary features that some companies have exploited to build their projects on.

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