> For the complete documentation index, see [llms.txt](https://docs.swivel.finance/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.swivel.finance/developers/ubiquitous-language-v4/compound-language.md). # Compound Language ### Compound Language Some terms used in the context of the Compound protocol, and how Swivel utilizes it. #### Compound Token A CErc20 at an address passed to the constructor of the Swivel contract at deployment. Pass an array of underlying token addresses + array of CERC20 addresses to create a public mapping of address -> address #### Mint When an agreement is initiated and after funds have been sent to the Swivel contract, cTokens are minted on the Compound protocol to generate interest. The number of cTokens minted is calculated in terms of the underlying token consumed/transferred rather than the # of cTokens to be minted. #### Redeem When an agreement has completed and "Release" is called, cTokens are redeemed on the Compound protocol to return an agreement's underlying deposit as well as the interest generated over the agreement's lending term. The number of cTokens redeemed is calculated in terms of the underlying token to be returned, rather than the # of cTokens to be consumed/transferred. #### Exchange Rate Exchange Rate refers to the 2e26+ uint returned from the Compound Protocol by exchangeRateCurrent(). In order to calculate the interest generated by an agreement, the current ratio of underlying:cToken is stored in each agreement upon its initiation(exchangeRateCurrent()). Over time this ratio increases such that when "Release" is called, the difference between stored / current exchange rate can directly calculate the yield an agreement has realized. #### CToken is Erc20 Note that all functionality of the Erc20 standard is available to the Compound Token. Use *CErc20* or *cToken* to specify. --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter, and the optional `goal` query parameter: ``` GET https://docs.swivel.finance/developers/ubiquitous-language-v4/compound-language.md?ask=&goal= ``` `ask` is the immediate question: it should be specific, self-contained, and written in natural language. `goal` is optional and describes the broader end goal you are ultimately trying to accomplish on behalf of the user. GitBook uses it to tailor the answer towards what is most useful for that goal. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.