Compound Finance is one of the original DeFi money markets — an autonomous, on-chain lending protocol with cToken pools (v2) and single-base-asset Comet markets (v3) deployed across major EVM chains and governed entirely on-chain by COMP holders.
V3 Comet markets have one borrowable base asset (USDC). Other assets are collateral-only — they cannot be borrowed.
Each Comet market has one borrowable base asset (USDC, USDT, WETH). Other assets are collateral-only — simpler risk surface, isolated parameters.
When health drops below 1, the protocol absorbs the position. Liquidators then buy seized collateral from the protocol at a discount.
Live signals detected by Sentinel monitors across all five risk classes.
See each alert's affected component, root-cause analysis, and recommended action. Pro members get the full risk breakdown for every protocol.
Crypto holders want yield on idle balances and on-chain borrowers want capital without intermediaries, with transparent risk parameters and zero custody.
Compound pools supply and demand into algorithmic interest-rate markets — suppliers receive cTokens/Comet shares that accrue interest; borrowers post collateral and draw the base asset, all governed on-chain by COMP holders.
Original cToken model + Comet's single-base-asset design pioneered two distinct lending architectures that have shaped the entire DeFi lending category. Battle-tested through every major DeFi stress event since 2018.
Compound Finance is a Lending protocol operating on Ethereum, Arbitrum, Base, Optimism, Polygon, Scroll, Mantle. Compound Finance is one of the original DeFi money markets — an autonomous, on-chain lending protocol with cToken pools (v2) and single-base-asset Comet markets (v3) deployed across major EVM chains and governed entirely on-chain by COMP holders.
DeFi Sentinel rates Compound Finance AAA with a safety score of 93/100, indicating highest safety tier. The score reflects five risk dimensions: smart contract & technical risk, economic design & market risk, governance & centralization, sustainability & competitive position, and reputation & social trust. Compound Finance has 4 audits on record. As with all DeFi protocols, residual risk remains and users should review the full risk breakdown before depositing.
Compound Finance has a DeFi Sentinel safety score of 93/100 (rating AAA), last updated May 15, 2026. The score is computed across smart contract & technical risk (30%), economic design & market risk (25%), governance & centralization (20%), sustainability & competitive position (15%), and reputation & social trust (10%).
Compound Finance is deployed on Ethereum, Arbitrum, Base, Optimism, Polygon, Scroll, Mantle.
Yes. Compound Finance has 4 audit reports on record from firms including OpenZeppelin, ChainSecurity, Trail of Bits. Audit reports and dates are linked under the Resources tab on this page.
