> For the complete documentation index, see [llms.txt](https://resources.defirisk.intotheblock.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://resources.defirisk.intotheblock.com/compound-v2.md).

# Compound v2

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Compound V2 is a decentralized finance (DeFi) protocol that enables users to lend or borrow cryptocurrencies in a trustless ecosystem. By depositing assets into the protocol, lenders can earn interest, while borrowers can secure loans by providing collateral, all managed through smart contracts.