DeFi 10120 September 2021

What are cTokens in DeFi?

What are cTokens

Summary

· cTokens track funds lend to a pool and interest earned

· Different crypto assets offer different cTokens

· cTokens are ERC20 tokens

cTokens are the back-ends of compound protocol used to track funds lended to a protocol by a user and the interest earned by the funds.

Whenever a user supplies crypto funds to a lending pool, they get a corresponding balance in the form of cTokens, which is directly proportional to the amount they have staked in the pool. Different assets have different cTokens. For instance, a user who contributes to the pool in DAI currency gets a cDAI token.

All cTokens are ERC2- tokens, making it possible for holders to view them on Etherscan. They can also be stored in an Ethereum wallet lime Metamask or Coinbase.

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