COMP airdrop strategy brings nearly tens of millions in growth to the platform, but PoolTogether users need to be cautious!

The issuance strategy of Compound's governance token has proven effective, with the proposal resulting in a ten million dollar increase in the platform's collateral value. As a result, both borrowing and lending interest rates have risen, injecting new vitality into its long-stagnant lending market. However, users of Compound's zero-cost lottery platform, PoolTogether, should take note that they may not be eligible for COMP token airdrop rewards until August.

Compound Governance Proposal Unanimously Approved

According to previous reports, the governance token of the decentralized lending platform Compound is about to enter the next stage by initiating an airdrop for all platform users. The airdropproposal (proposal number 007) was created on June 11 and unanimously approved on June 16 under the votes of major investors such as Polychain Capital, Dragonfly Capital, and InstaDApp. The proposal will activate on June 16, distributing the governance token COMP to platform users.

Compound itself is already a successful project in DeFi, and with tokens in the decentralized finance (DeFi) sector being a focal point in the current market, as well as COMP token being listed in the next round of Coinbase exchange listings, various factors have increased the attractiveness of COMP token. Therefore, many users flocked to Compound for borrowing (as borrowing allows for more COMP token distribution than depositing). According to data at that time, the borrowing rate for USDT surged to 20.44%, causing the deposit rate to rise to 16.69%, and the platform'stotal value locked increased by nearly $10 million.

However, after a day of balancing, therates have decreased, with the borrowing rate at 14% and the deposit rate at 7.58%. From this perspective, Compound's "liquidity mining" token issuance strategy has been effective. Besides fairly distributing tokens to platform users, it also brings more active users and liquidity to the platform.

PoolTogether Temporarily Does Not Support Token Distribution

On the other hand, the zero-cost lottery platform PoolTogether, based on Compound, released anannouncement on Sunday stating that the system currently does not support the distribution of Compound protocol's governance token COMP, meaning users participating in PoolTogether will not receive COMP.

PoolTogether acts as a fund pool that consolidates users' funds stored in Compound to earn interest, selecting one lucky winner from all users to receive the interest earned during the period as a prize. As the principal does not decrease, it is referred to as a zero-cost lottery. Since PoolTogether stores money in Compound, it can also receive COMP governance tokens. However, according to PoolTogether, the function to withdraw COMP tokens will only be added when V3 version is released, expected to go live before August. In other words, PoolTogether users will not receive tokens before August, and the team has not yet explained how the tokens allocated during this period will be handled.