It's important to note that this comparison was not done to dissuade users from using any of the protocols that will be discussed today.
Let's start with analyzing what Compound is about. We will start by looking at what their website has to say, “Compound is an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.”
What the aforementioned means is that Compound is a DeFi protocol that permits uses to easily borrow or lend. Apart from what is discussed above, with compound, users can vote on different proposals concerning what happens in the protocol.
UniLend is a permissionless protocol that allows digital assets to be listed without stress. The absence of order book makes this possible, as long as the Ethereum digital asset has a liquidity pool. Unlike other exchanges, where numerous rules have to be followed before they can be listed.
UniLend users can effortlessly get involved in community governance, thereby allowing them to make decisions concerning the protocol. UniLend is the true definition of decentralization, as it is open source.
It's not news that Compound is not permissionless, as it supports only a few tokens, which are chosen based on community proposals and voting. Before a digital asset can be listed on Compound, a proposal has to be made and voting by community users need to be done. On UniLend, anyone can list an Ethereum based asset, as long as it has a liquidity pool. This will offer users access to an unlimited number of digital assets that they can be involved with.
The permissionless listing mechanism that UniLend has, allows users to automatically churn out different money markets for every asset. This permits them to easily lend the asset, borrow it and trade it easily, without having to deal with a custodian. It takes out the need for votes to be cast before an asset can be listed, unlike what is seen in Compound.
From the above, one can tell which one they would prefer. Apart from the functionlities discussed above, UniLend has more features that can't be seen in Compound. One of them is the spot trading feature.
Users will easily get involved in decentralized spot trading of listed assets. UniLend is incorporating numerous features that can be seen in a typical money market scenario. One reason that users keep complaining about DeFi is the fact that it doesn't have all the traditional features that the conventional financial system offers.
Apart from spot trading, users of UniLend will benefit from being able to lend and borrow real life assets. This is made possible with the tokenization of real life assets by OpenDeFi. Who says that one can't enjoy the perks of traditional financing right in the DeFi world? With UniLend, users will be able to lend and borrow staked assets. This is powered by StaFi.
The CyberFi integration in UniLend is what makes it easy for users to borrow and lend digital assets in an automated manner.
