FAQs - Maximise COMP

The Maximise COMP tool was launched on Instadapp (tweet) to maximise the COMP returns on your Compound Finance positions.

This thread collects the basic FAQs.

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What is COMP?

COMP is a governance token for the Compound.Finance protocol; a portion of this token has been allocated to be distributed to the community. The token is distributed to users of the platform both the lender and the borrowers of Compound. The amount of token distributed is based on the interest accrued by the asset.

More Info: https://medium.com/compound-finance/expanding-compound-governance-ce13fcd4fe36

What is COMP MAXing or COMP Farming?

COMP Farming is a way of increasing your exposure to the Compound protocol so that you can claim more COMP tokens; because of the way Compound works; you can easily create a leveraged position as a way of increasing your exposure.

How does Instadapp help with accruing COMP?

You can use the Instadapp tools to easily execute this type of transaction in one step. You can increase your exposure by up to 4X and depending on the asset and percentages as much as 30X. Please refer to the Compound borrowing/lending rates; liquidation and other parameters set by the Compound protocol.

More Info: https://compound.finance/markets

How do I unwind the leveraged (MAX COMP) position?

To unwind a leveraged position you can use the SAVE function to execute the leverage in reverse.

How to claim accrued COMP token?

COMP token is automatically distributed whenever you interact with one of the assets and it’s accrued at least 0.001 COMP; COMP is accrued by asset. If you borrowed USDT and accrued 0.003 from USDT then a payback, withdraw or interaction with the Compound protocol will release the COMP; it does not release all COMP accrued across all assets. We are currently working on creating a one click claim all solution.