The Compound Protocol offers a decentralized platform where you can earn interest on your cryptocurrency assets or borrow against them. In this guide, we will walk you through the steps to supply Ethereum assets to the Compound Protocol using various tools and libraries.

What You Need Before You Start

• A wallet with ETH or DAI for supplying to the protocol.
• Node.js installed on your machine.
• Familiarity with command line and JavaScript libraries for web3 development (like Web3.js, Ethers.js, or Compound.js).
• A local Ethereum testnet set up (optional for testing).

Setting Up Your Environment

Begin by setting up the required environment to supply assets to Compound:

• Install Node.js LTS if you haven’t already.
• Clone the repository using the following commands:

git clone git@github.com:compound-developers/compound-supply-examples.git
cd compound-supply-examples
npm install

• To run the project, you will also need to install npx if it’s not already installed:

npm install -g npx

Running a Local Ethereum Testnet with Hardhat

If you’re looking to test your supply actions locally, use Hardhat to run a testnet:

cd compound-supply-examples
# Set environment variables
export MAINNET_PROVIDER_URL=https://mainnet.infura.io/v3/YOUR_INFURA_API_KEY_HERE
export DEV_ETH_MNEMONIC=your mnemonic here
# Run the Hardhat node
node scripts/run-localhost-fork.js

Make sure you replace YOUR_INFURA_API_KEY_HERE with your actual Infura API key.

Supplying Assets Directly via JSON RPC

There are various examples you can run to supply ETH or ERC20 tokens directly. Here’s a simple outline:

• To supply ETH:

node examples-js/web3-js/supply-eth.js

• To supply DAI:

node examples-js/web3-js/supply-erc20.js

Understanding the Code: The Tree Analogy

Think of the code you’re running as an intricate system of trees in a vast forest. Each section of code is akin to a different tree species, each thriving within its own ecosystem. For example, when you invoke a function to supply assets to the Compound Protocol, it’s like watering a tree to help it grow. Each tree (function) plays its part in ensuring the forest (your application) becomes a flourishing place. As you supply ETH or DAI, those trees thrive by becoming cETH and cDAI, representing your growing assets.

Troubleshooting Tips

If you encounter issues while running the scripts or supplying assets, consider the following:

• Double-check your Infura project settings and ensure your API key is valid.
• Confirm that you have enough ETH in your wallet to cover transaction fees.
• Ensure you correctly set the environment variables in your terminal.
• If running into errors related to contracts, verify that you have the correct contract addresses from Compound’s documentation for your network.
• Check for any syntax errors in your scripts.

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Conclusion

By following these steps, you can successfully supply assets to the Compound Protocol and take part in the growing DeFi ecosystem. The flexibility offered by various libraries makes engaging with Compound straightforward and accessible.

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