A user reward scheme to distribute the new Compound governance token (COMP) has resulted in a dramatic rise of the value locked in the decentralized finance protocol as traders sought to “farm” the token, as fans affectionately call the practice.
According to data from Defi Pulse, the Compound protocol’s total locked value soared from about $100 million to a high exceeding $600 million since June 15, the start of the COMP token distribution.