SCH.cx – How to Mine Compound: A Step-by-Step Guide. Compound is a decentralized finance (DeFi) platform that allows users to lend and borrow cryptocurrencies. It is built on the Ethereum blockchain and has gained significant popularity in recent times, with over $10 billion in assets locked on the platform.
Mining Compound involves providing liquidity to the platform’s pools and earning rewards in return. In this guide, we will walk you through the steps required to mine Compound.
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Step 1: Set up a Wallet
The first step to mining Compound is to have an Ethereum wallet. You can use any wallet that supports Ethereum, such as MetaMask or MyEtherWallet. Ensure that your wallet is funded with enough ETH to cover the gas fees required to make transactions on the Ethereum network.
Step 2: Connect to Compound
Once you have set up your wallet, go to the Compound website and connect your wallet to the platform. You can do this by clicking on the “Connect Wallet” button on the homepage and selecting your wallet provider from the list of options provided.
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Step 3: Provide Liquidity To start mining
Compound, you need to provide liquidity to one of the platform’s pools. You can do this by selecting a pool from the list of options provided and clicking on the “Supply” button. You will need to provide an equal value of two tokens that the pool accepts. For instance, if you want to provide liquidity to the DAI/USDC pool, you will need to provide an equal value of DAI and USDC.
Step 4: Confirm the Transaction
After selecting the tokens you want to provide liquidity with, you will need to confirm the transaction by clicking on the “Supply” button. You will be prompted to confirm the transaction on your wallet, and you will need to pay a gas fee to complete the transaction.
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Step 5: Wait for Confirmation
After confirming the transaction, you will need to wait for it to be processed and confirmed on the Ethereum network. This can take a few minutes, and you can monitor the progress of the transaction on the blockchain explorer.
Step 6: Start Mining
Once your transaction is confirmed, you can start mining Compound. You will earn a portion of the interest generated by the pool, which is proportional to the amount of liquidity you provide. You can monitor your earnings by clicking on the “Account” tab on the Compound website.
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Step 7: Withdraw Rewards
You can withdraw your Compound rewards at any time by clicking on the “Withdraw” button on the pool page. Your rewards will be automatically added to your wallet, and you will need to pay a gas fee to complete the withdrawal.
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Conclusion Mining Compound is a simple and straightforward process that involves providing liquidity to one of the platform’s pools. By following the steps outlined in this guide, you can start earning rewards on Compound today.
 platform that allows users to lend and borrow cryptocurrencies. It is built on the Ethereum blockchain and has gained significant popularity in recent times, with over $10 billion in assets locked on the platform.){kind=link}