Explanation of exchange rate for Compound

[therighty]

In the timestamp of this video, I need help with clarification. When you deposit a certain amount and take it out maybe a few months later, you would've gained a profit due to the exchange rate increasing right? Or does the exchange rate not increase because all ETH blocks have all developed and the exchange rate would be static even if I were to take it out months later?

https://youtu.be/aTp9er6S73M?t=470

Thanks for the help.

[1715422056]

1715422056

[jackg]

I'm going to assume it's set by a smart contract that determines the block height and whatever function is being used.

The main interactions originally were issuing loans and taking loans (even if its possible to buy things like cdai on uniswap). I'm assuming the block height or the amount of assets that are stored determines how much interest you pay and how much compound grows (people normally have to collateralise 150% of their loan value as well).