compoundtutorials
  • Chapter 1: Introduction to Compound
    • 1. What Is Compound?
    • 2. Introducing Comet (Compound V3)
    • 3. What’s Next?
  • Chapter 2: Markets, Utilization & Interest Rates
    • 1. What Is a Market in Comet?
    • 2. Utilization: Balancing Supply & Demand
    • 3. The Kink: A Flexible Threshold
    • 4. Interest Rate Parameters
    • 5. Supply and Borrow Interest Rates vs. Utilization Rate Chart
    • 6. Why This Matters
  • Chapter 3: Hands-On Tutorial (Step by Step)
    • 1. Environment Setup
    • 2. Getting Sepolia ETH and WETH
    • 3. Project Structure
    • 4. Creating the index.js Script
    • 5. Run the Script
    • 6. Next Steps
  • Chapter 4: Repaying, Withdrawing & Managing Your Position
    • 1. Updating index.js
    • 2. Example Usage in Your Main Execution
    • 3. Recap
    • 4. Summary & Best Practices
  • Chapter 5: Using the Compound.js SDK
    • Getting Started
    • Performing Common Actions
  • Chapter 6: Additional Resources
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  1. Chapter 2: Markets, Utilization & Interest Rates

1. What Is a Market in Comet?

In Compound V3 (Comet), each “market” revolves around a single base asset—this could be USDC, ETH, stETH, USDS, or another token chosen for that instance. Whether you’re lending or borrowing, it all ties back to this single asset. • For example, in a USDC-based Comet, users deposit various collaterals (e.g., WETH, LINK) but only borrow USDC.

• In an ETH-based Comet, you can deposit select collateral tokens to borrow ETH. This keeps lending and borrowing simpler while giving a clear view of how much liquidity is in a single market.

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