Compound Finance is a decentralized money market and lending protocol built on Ethereum. Its Compound III (Comet) protocol enables users to borrow or lend from single-collateral pools of “base assets.” Compound III supports base assets (e.g., USDC, WETH, etc.) on Ethereum, Polygon, Base, and Arbitrum. Compound III has dynamically adjusted interest rates, which are algorithmically determined based on the supply and demand dynamics within the market.