What is cToken?

A cToken is a lending token native to the Compound platform. When users deposit a cryptocurrency using the Compound protocol, they receive cTokens which represent the initial deposit plus accrued interest. For example, lending DAI to Compound gives the lender cDAI, which automatically earns interest for the cDAI holder. At any time, cDAI can be returned to Compound in exchange for the original DAI plus the accumulated interest.