what's compound?
Compound is an algorithmic money market protocol that enables users to lend and borrow cryptocurrencies in a decentralized manner on the Ethereum blockchain. It operates through smart contracts that automatically adjust interest rates based on the supply and demand of assets in the protocol's markets. Users can supply assets to earn interest or borrow against collateral, with liquidation mechanisms ensuring the protocol's solvency. The protocol's governance is decentralized via the COMP token, allowing holders to propose and vote on changes to the protocol's parameters and upgrades. Compound III introduces advanced features like multiple oracles for price feeds and enhanced risk management tools. It supports a variety of assets, fostering composability with other DeFi applications. Built for developers, Compound provides open-source infrastructure that can be integrated into broader financial ecosystems, promoting permissionless innovation in decentralized finance.
Compound launched foundational DeFi lending (2018) and pioneered yield farming with COMP (2020).
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Included in a comprehensive DeFi timeline as launching Compound Finance in 2018 as a foundational DeFi lending protocol, and introducing yield farming with COMP token distribution in 2020.
Reached a revenue run rate of approximately $60 million in April 2021.
A user lost $563,000 while withdrawing funds from Compound after granting a malicious token permission that allowed an attacker-controlled address to transfer the user's assets.
Lead investor a16z completes full exit of COMP position, transferring final 276,000 tokens ($7.6M) to Coinbase Prime with zero COMP remaining on-chain from original 1 million token investment representing 10% of total supply.
Compound exits the top 20 DeFi protocols by TVL between December 2024 and December 2025 due to structural outflows as competitors Aave, Spark, and Morpho gain lending market dominance.
Compound gains +13.72% over the past week, placing 8th among weekly top performing crypto projects.
Almanak integrates Compound as one of six protocols for its alUSD vault's liquidity allocation strategy to maximize yield generation.
Interpol elevates the network to global threat status as crypto fraud spreads.
Clearpool's new Credit Vaults product integrates Compound as a deployment market for low-risk allocation of undrawn credit facility capital.
Compound participated in Uniswap Foundation's first CFM partnership in July 2025, competing with Euler, Morpho, and Venus in a week-long forecasting market for $100k funding based on TVL projections.
Whale liquidation of $6.67M occurs on Compound as BTC falls below $100K, with the position longing WBTC against borrowed USDT and DAI.
USDT market unpaused late Friday, completing the restoration of all V3 markets with full withdraw and borrow functionality now operational.
Compound's treasury covers millions in bad debt from both deUSD and sdeUSD listings by Gauntlet, while K3 files lawsuit against Elixir over locked bad loans on Euler. Stream Finance's total hole reaches $93 million, triggering $350 million in redemptions from Reservoir protocol and creating 9 figures of bad debt across Euler, Morpho, and Silo lenders against xUSD collateral.
Withdrawals resume for USDC and USDS markets following temporary pause due to deUSD liquidity concerns.
Gauntlet pauses withdrawals on Compound as deUSD depegs, preventing users from withdrawing capital due to bad debt exposure.
Stream defaults on loan positions holding 90% of deUSD supply (~$75m) and refuses to repay or close positions; Compound collaborates with Euler, Morpho and curators to distribute repayment and liquidate positions as Elixir sunsets deUSD with mint/redeem infrastructure turned off.
USDC, USDS, and USDT V3 markets on Ethereum mainnet pause is now active until Nov 06 ~7PM UTC, with withdrawals and borrowing disabled during the 48-hour period.
Compound sunsets Ronin Blitz rewards program while maintaining active RON, wETH, and USDC markets on Ronin blockchain.
Upcoming bearish news expected around vault curators and contagion from October 10 events affecting Compound alongside Elixer, Balancer, Ethena, and StreamDeFi.
Emergency pause proposal submitted for mainnet Compound venues covering USDC, USDT, and USDS markets, prompted by sdeUSD instability while deUSD currently trades at par value.
Compound falls out of top 12 DeFi protocols by TVL rankings today after holding #9 position three years ago on the same date.
deUSD functions as collateral on Compound v3 while trading at $1, and an oracle exploit affects Moonwell core market (a Compound v2 fork).
Jill Friedman from Compound Foundation joins UBS and Bitwise leaders on November 4 SmartCon 2025 panel about scaling decentralization amid institutional adoption.
Compound generates $1.2 million in revenue against $2.6 billion in TVL according to DefiLlama data.
MegaETH's $MEGA token public sale (October 27-30) grants priority allocations to active Compound users as part of their bimodal allocation system for oversubscribed scenarios.
Millions of code sandboxes have been created across Compound and OpenAI GPT-OSS on GroqInc Cloud infrastructure.
Compound team members Dr. Shelby and Smac publish research paper on DeSci (Decentralized Science).
Pendle Finance uses Compound alongside Aave in its âtvUSDC yield optimization product that wraps positions into fixed-yield principal tokens.
The Ethereum Foundation Treasury deposits 4,200 ETH into the protocol, with additional deployments planned according to the announcement stating "more to come."
Nerite protocol adds COMP as accepted collateral for its USND stablecoin on Arbitrum, allowing users to retain governance voting rights while collateralizing the token.
Compound Finance offers approximately 8.5% yield on USDS on the Base network.
Phi platform announces planned integration into its Board Coins feature on Base, which enables ETH yield earning through multiple DeFi protocols powered by Uniswap v4 hooks alongside Aave, Morpho, and Euler Finance.
A proposal to recall 300,000 delegated COMP tokens has failed.
Goes live on GroqCloud, introducing AI-powered agents with improved accuracy to the platform.
pufETH launches on WETH v3 market, allowing users to supply and borrow against the liquid staking token with additional incentives planned.
Alpha Growth CEO Bryan Colligan publicly recommends against rehiring Gauntlet under the current business model amid the ongoing $2.3M contract renewal debate.
DAO votes on renewing Gauntlet's $2.3M annual risk management contract amid criticism of poor ROI and conflict of interest concerns.
SparkFi surpasses v3 protocol to become third largest USDT liquidity pool in DeFi, with potential to reach second position within two weeks.
RON borrowing markets launch on official platform with boosted rewards; Complend.tech frontend sunsets October 1st.
New whale position revealed: 228.7K COMP held by Trend Research at $49.3 cost basis.
New history page launches with oracle-based pricing and position tracking across Ethereum, Arbitrum, Base, and Optimism networks.
New automation suite launches with target price, stop loss, and take profit features across Ethereum, Arbitrum, and Base networks.
Cross-chain proxy contracts deployed on Polygon, Optimism, Avalanche, and Arbitrum networks.
Lead investor transfers 349,000 COMP ($18.85M) to institutional platform; 87,250 COMP already moved to major exchanges.
New RedStone Atom integration enables zero-latency liquidations and atomic execution for enhanced protocol security.
POL incentives launch on Blue platform, expanding yield opportunities.
wOETH launches as new collateral type for borrowing against staked ETH.
Founder sells CryptoPunk NFT for $5.15M in GameSquare stock and joins as treasury advisor.
Protocol generates $50M+ annualized fees with $237.8M TVL on Arbitrum L2.
New wallet withdraws 2.78M UNI ($25.56M) from Binance, identified as same entity that previously withdrew 70K COMP.
Whale withdraws 70k COMP ($3.23M) from Binance alongside 2.78M UNI ($25.56M).
Whale accumulates 20,300 ETH ($56.3M) since July 4, systematically depositing into protocol.
DAO implements new treasury management strategy using Enzyme.Myso's covered calls protocol, targeting 15% APY on idle assets.
Whale deposits 4,000 ETH ($11.18M) from Kraken into protocol alongside Aave.
Founders depart to launch Superstate, focusing on onchain stocks platform.
Major VC a16z completes full exit of position, transferring final 400,000 tokens ($16.48M) to Coinbase Prime, totaling 800,000 tokens ($34.81M) moved in 10 days.
Active governance vote proposes migration to Aragon platform for streamlined governance and cost reduction.
New Unichain grant competition offers $100,000 to lending protocol with highest forecasted TVL by July 11.
New superOETH integration launches with COMP rewards and L2 incentives from Aerodrome.
A16z transfers additional 100k COMP ($4.58M) to Coinbase Prime, totaling 400k COMP ($18.33M) in past 21 hours.
a16z retains $31M COMP position after recent Coinbase transfer, revealing larger holdings than previously reported.
Large wallet deposits 300k COMP ($13.75M) to Coinbase Prime, possibly linked to A16z.
DAO implements covered call strategy targeting 15% APY for treasury management
DeFi Saver partnership brings automated leverage management tools to USDT/USDC markets and instant leverage features platform-wide.
Major DeFi whale holding $56.75M position moves $5.04M ETH to Binance, signaling potential portfolio restructuring.
Offers highest USDS rewards at 7.6% on Base chain among major protocols with >$10M TVL
Launches wsuperOETHb lending market on Base chain with 88% LTV, allowing 8.3x leverage on staking yields.
New governance proposal seeks to add LRON asset support on Ronin chain.
Outperforms Aave by 13% despite 11.5x smaller TVL, driven by SEC regulatory clarity creating DeFi governance efficiency premium.
New cross-chain lending infrastructure enables using Ethereum collateral for borrowing on Arbitrum, featuring integrations with LayerZero, Axelar, Wormhole, and Chainlink CCIP for multi-chain position management.
GENIUS Act vote today requires 100% USD/treasury backing for stablecoins, potentially increasing DeFi lending activity.
Token price surges 29.09% in 24 hours, ranking as second-highest gainer among major cryptocurrencies.
Strong 27% price movement amid broader DeFi sector rally
Current weETH/eETH liquidity position shows 18.82K ETH TVL, ranking third behind Aave (1.86M ETH) and Zircuit (43.22K ETH) in market share.
$200K in USDC borrowing incentives now available for next month across Venus, Euler, and Compound platforms.
Token now available for trading on eToro's U.S. platform alongside 11 other major cryptoassets.
DeFi platform achieves $10B+ total trading volume and launches perps trading backed by HyperliquidX, while maintaining 300K+ active users without token incentives.
Treasury implements covered call strategy via Enzyme.Myso integration, targeting 15% APY on treasury assets.
Patent troll threat against oracle technology resolved through DeFi Education Fund's patent purchase and public release.
Losing dominant position in DeFi lending market as Morpho and Spark rapidly capture market share.
Public token sale starts May 16-26 with 25% supply allocation and uncapped participation; testnet live with airdrop opportunities through Seeds quests.
Institution Compound discloses active positions in Cortex ($CX) and Synthetix ($SYN).
Cross-chain lending protocol launches public sale following $4M raise, showing strong metrics with 300K+ users and 2M+ transactions.
Team-linked wallet deposits $11.2M worth of tokens to Coinbase Prime after redeeming $17.7M from protocol.
New privacy pool feature enables governance token delegation while maintaining privacy, compatible with multiple tokens.
New stablecoin yield offering up to 9.9% APY now available through Ledger Live integration.
weETH caps removed from protocol, enabling unlimited deposits.
New integration enables dual yield opportunities through ETH/wstETH borrowing when staking tETH on Compound.
Stage 0 protocol status confirmed with major centralization risks in oracle dependencies and emergency controls.
DeFi liquidation cascade risk rises as ETH approaches critical price level, with protocol among vulnerable platforms.
ETH lending yields 12.6% APY on Ronin's Compound market, exceeding standard ETH staking rates.
tETH tokens are now accepted as collateral on Compound protocol, enabling simultaneous borrowing and yield generation while maintaining ETH exposure.
Celsius administrators file lawsuit over liquidations caused by single Coinbase price feed, contrary to whitepaper's stated multiple feeds.
New MorphoLabs-powered vaults now accessible on Polygon network.
Team wallet transfers 150,000 $COMP ($6.24M) to Binance and Kraken exchanges.
New stablecoin yield opportunities (5-9.9% APY) available through Ledger hardware wallet integration.
New integration with Ledger Live enables up to 9.9% APY on stablecoins through protocol integration.
Suspected founder wallet deposits $7M to Coinbase, indicating potential selling pressure.
Active incentivized testnet launches with only 4.9k current participants, offering early farming opportunities through borrowing and lending tasks.
New cross-chain lending infrastructure launches testnet, enabling direct borrowing across Arbitrum and Ethereum mainnet through Layer0 integration.