Lending / Borrowing Protocol

Compound V3

Ethereum, Arbitrum, Base, Polygon Data as of March 2026

Compound is one of the foundational DeFi lending protocols. Version 3 (Comet) simplified the architecture: each deployment supports a single borrowable asset (like USDC) with multiple collateral types. There is no origination fee; the cost of borrowing is the variable interest rate paid over time.

Fee per Transaction

0.00%

No origination fee; cost is borrow APR over time

Round Trip Cost

$0.00

Buy + Sell on $1,000

TVL

~$3.5B

Pioneer of DeFi lending

How It Works

Compound V3 works differently from V2: each market has one base asset (e.g., USDC) that can be borrowed against multiple collateral types (ETH, WBTC, etc.). Suppliers earn interest on the base asset; borrowers pay interest.

Interest rates are algorithmic, adjusting based on utilization. Higher utilization means higher borrow rates, incentivizing new deposits.

COMP token holders govern protocol parameters. The protocol has operated since 2018 without a major exploit on core contracts.

Strengths

+Pioneer and battle-tested. One of the oldest DeFi protocols, operational since 2018 with a strong security record.

+No origination fees. Borrowing costs are purely the interest rate over time, with no upfront fee.

+Simplified V3 architecture. Single-asset markets reduce complexity and risk compared to multi-asset pools.

Risks

xLiquidation risk. Collateral can be liquidated if its value drops below the required threshold.

!Variable rates. Borrow rates can spike during high demand, increasing costs unpredictably.

!Gas costs on Ethereum. Supplying and borrowing on L1 can be expensive. L2 deployments mitigate this.

Open Compound ↗ Compare Fees ↗

Disclosure: This profile is provided for informational purposes only. White & TT does not hold a position in COMP. Fee data reflects publicly documented parameters as of March 2026. Always verify current fees on the protocol. This is not financial advice.

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