The amount of DAI supplied in the Compound protocol is now approximately 1.2 billion $ worth, while the total supply of DAI is only 900 million $.

The only way for this to happen is when people are using compound to borrow DAI, while supplying the same DAI back in the protocol in order to get the COMP rewards. They are essentially lending to themselves.

And of course it works like this, because the product doesn't make sense.

If people get a loan with their house as collateral, this makes sense. Because a house is an illiquid asset and you can use the money to do whatever you want to do while still living in your house. However, with compound you are literally loaning a liquid asset with another liquid asset. If i have ETH and i need DAI i can just go to Uniswap and swap some DAI.

The ONLY practical use case for Compound borrowing is for people who want to over-leverage themselves to crypto assets - you keep one asset but buy another one too with the borrowed money. But there are tons of centralized options for that too, and the maximum leverage you can achieve is no more than 1.75x because you need to over-collateralize.

There is no way this market is worth 350 million dollars. The value proposition for COMP is sketchy at best.

To be fair 'marketplace' indicates that something is being sold, but that is not the case. Which is also why the token is basically worthless.
Database is fine, network is fine, but don't call it a marketplace unless you are actually selling something.

The whitepaper literally says it was formerly DNET, you know what else used to be DNET? PIVX used to be called Darknet
If it was really a new project this part makes absolutely no sense. But it does, because this is a scam.

Furthermore, they mention something of an exchange on the BCE website, but there is nothing that even remotely relates to an economic model.
Again, this project is clearly a scam.

DO NOT INVEST IN THIS!