Cryptocurrency & Blockchain · head to head
Compound vs FTX
Compound
Cryptocurrency & Blockchain
Autonomous interest rate protocol
- From
- Free
- Rated
- -
The short version
- Each has a real cost: Compound compound is a decentralized, non-custodial protocol governed by COMP token holders rather than a company; interest rates on supplied and borrowed assets are set algorithmically by pool utilization rather than published as a price list, so there is no vendor pricing page to compare against; FTX the exchange collapsed and FTX Trading Ltd filed for Chapter 11 bankruptcy protection on 11 November 2022
- They diverge on capability: Compound covers Lending, FTX covers Futures Trading.
Where they differ
Only the attributes on which Compound and FTX actually diverge.
Identical on both: starting price (Free), free tier (Yes), user rating (Not yet rated), category (Cryptocurrency & Blockchain).
What each one covers
Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.
Only in Compound
- Lending
- Borrowing
- cTokens
- Governance
- COMP Token
- Ethereum
Only in FTX
- Futures Trading
- Options
- Leveraged Tokens
- Spot Trading
- FTT Token
- Serum DEX
- Ios support
- Android support
Both cover
- Web support
What people use each for
The jobs each tool is most often brought in to do.
Compound
- Decentralised finance (DeFi) lending and borrowing protocol on Ethereumnot FTX
- Cryptocurrency collateral management for USDC borrowingnot FTX
- Interest earning through crypto asset supplynot FTX
- Algorithmic interest rate determination based on supply and demandnot FTX
FTX
- Exchangesnot Compound
- Derivativesnot Compound
- Tradingnot Compound
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
Compound
- Compound is a decentralized, non-custodial protocol governed by COMP token holders rather than a company; interest rates on supplied and borrowed assets are set algorithmically by pool utilization rather than published as a price list, so there is no vendor pricing page to compare against
FTX
- The exchange collapsed and FTX Trading Ltd filed for Chapter 11 bankruptcy protection on 11 November 2022
- Around 130 affiliated companies including Alameda Research entered the same proceedings, with more than 100,000 creditors and assets and liabilities each between $10 billion and $50 billion
- Founder Sam Bankman-Fried resigned as CEO on the filing and was replaced by John J. Ray III
- It is not a service anyone can sign up for; the estate exists to repay creditors
Pricing, plan by plan
Compound
FreeNo published plan breakdown. See the Compound review.
FTX
Free- StandardFree
- Spot trading
- Futures
- Options
Which should you pick?
Choose Compound if
- You need lending.
- You want to start without paying.
- You work on Ethereum.
- You also want borrowing.
Choose FTX if
- You need futures trading.
- You want to start without paying.
- You work on Web, Ios, Android.
- You also want options.
Questions people ask
- Is Compound or FTX better?
- Neither clearly leads. Compound starts at Free and FTX at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Compound or FTX?
- Compound starts at Free and FTX at Free.
- Does Compound or FTX run on more platforms?
- Compound runs on Ethereum. FTX runs on Web, Ios, Android.
- Can I use Compound for free?
- Both have a free tier, so you can try either at no cost before committing.
- What is Compound best used for?
- Compound is most often used for decentralised finance (defi) lending and borrowing protocol on ethereum, cryptocurrency collateral management for usdc borrowing, interest earning through crypto asset supply, algorithmic interest rate determination based on supply and demand. Of those, decentralised finance (defi) lending and borrowing protocol on ethereum and cryptocurrency collateral management for usdc borrowing are not what FTX is typically brought in for.
- What can Compound do that FTX cannot?
- Compound covers Lending, Borrowing, cTokens, Governance. FTX covers Futures Trading, Options, Leveraged Tokens, Spot Trading. Both handle Web support.
Answered from the vendors’ own pages
FTX: What happened to FTX?
FTX filed for bankruptcy on November 11, 2022, after revelations about Alameda Research's massive holdings of FTX's token (FTT) triggered a liquidity crisis. The platform collapsed within days as a competing rescue deal fell through.
SourceFTX: Can I recover funds from FTX bankruptcy?
FTX has been in Chapter 11 bankruptcy proceedings since November 11, 2022. Customer funds have been subject to claims through the bankruptcy process, with asset recovery efforts ongoing.
Source