Cryptocurrency exchange FTX is listing decentralized lending protocol Compound's governance token COMP and cUSDT this week, The Block has learned.
The exchange's CEO Sam Bankman-Fried confirmed to The Block that it will be listing COMP and cUSDT on both FTX and FTX US for spot trading. Meanwhile, it will also launch a slew of futures products for COMP and cUSDT on its international platform, including USD-denominated perpetual swaps, quarterly cash-settled futures and leveraged tokens against USD and USDT.
"[COMP] is a really exciting project and a huge step forward for DeFi; in addition, the token is generating a large amount of attention right now," Bankman-Fried told The Block.
Bankman-Fried said FTX is also listing cUSDT, a token that serves as a one-to-one representation of the stablecoin USDT on Compound, because it is the most popular of Compound's synthetic tokens right now. "Also, USDT is something lots of FTX users care about," he said.
Compound started distributing COMP to users on Monday. The token was soon listed on Uniswap and it is currently trading at $147 on the decentralized exchange. Meanwhile, Coinbase announced today that it is listing the token as well and will start accepting COMP deposit on June 22.
FTX's COMP index price will be an average of prices from four trading pairs — COMP/ETH and COMP/USDT on crypto exchange Poloniex, COMP/USD on FTX and COMP/USD on FTX US. FTX will also consider adding Coinbase's price to its index price calculation, said Bankman Fried.
Still, even though COMP's 24-hour trading volume on Uniswap has continued to grow — and surged 452% to $2,670,162 today — it still has relatively low liquidity and high price volatility. For this reason, FTX may limit the leverage on COMP to reduce the liquidation risk, according to Bankman-Fried.
Disclaimer: The former CEO and majority shareholder of The Block has disclosed a series of loans from former FTX and Alameda founder Sam Bankman-Fried.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.