Compound

What is Compound?

The Compound Governance Token is a governance token on the Compound Finance lending protocol, COMP allows the owner to delegate voting rights to the address of their choice; the owner’s wallet, another user, an application, or a DeFi expert. Anybody can participate in Compound governance by receiving delegation, without needing to own COMP.

Anybody with 1% of COMP delegated to their address can propose a governance action; these are simple or complex sets of actions, such as adding support for a new asset, changing an asset’s collateral factor, changing a market’s interest rate model, or changing any other parameter or variable of the protocol that the current administrator can modify.

How to Buy Compound in India

The easiest way to buy Compound (COMP) in India is through an FIU-registered Indian exchange. Here's how:

1. Create an exchange account — pick an exchange that appears on the FIU-IND register and complete KYC verification (Aadhaar + PAN). Takes under 10 minutes.
2. Deposit INR — Add funds via UPI, IMPS, or bank transfer. No minimum deposit.
3. Search for COMP — Use the search bar to find Compound. Tap on it to open the trading pair.
4. Place your order — Enter the amount in INR you want to invest. Use a market order for instant purchase, or a limit order to set your price.
5. Secure your holdings — Your COMP is stored in your exchange wallet. For large amounts, consider transferring to a hardware wallet.

Tax on Compound in India

Losses from Compound trading cannot be set off against gains from other cryptocurrencies or any other income. Each transaction is taxed independently.

For a complete breakdown of crypto taxation in India, including ITR filing steps and airdrop rules, read our Crypto Tax India 2026 Guide.

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