lending protocol review
Compound III
Isolated-base-asset lending markets with governance-controlled collateral parameters, reserves, and price feeds.
partialmedium
TVL
$3.20B
Protocol reported or analyst-entered value.
Exposure
$1.70B
Mapped collateral and market exposure.
Dependencies
16
0 critical dependencies.
Markets
2
3 monitor signals configured.
Protocol facts
Static fields from the typed research record.
ProductsUSDC markets, WETH markets, Comet deployments
ChainsEthereum, Arbitrum One, Base, Polygon PoS
Categorylending
Review statuspartial
Markets
Collateral, oracle, cap, and liquidation parameters by market.
| Market | Chain | Collateral | Oracles | LTV | Liquidation | Supply cap | Borrow cap | Utilization |
|---|---|---|---|---|---|---|---|---|
| Ethereum USDC Comet | Ethereum | oracle:ethereum:chainlink:eth-usd, oracle:ethereum:chainlink:btc-usd | 79% | 85% | $1.30B | $900.0M | 67.0% | |
| Base USDC Comet | Base | oracle:base:chainlink:eth-usd, oracle:base:chainlink:usdc-usd | 76% | 82% | $850.0M | $540.0M | 81.0% |
Risk findings
Findings separate the observed evidence from the analyst outcome.
| Severity | Dimension | Finding | Outcome | Evidence | Sources |
|---|---|---|---|---|---|
| medium | exposure concentration | Base asset concentration per market | Bad debt can accrue if base asset liquidity deteriorates. | Compound III markets isolate borrowing around a base asset but still depend on collateral and oracle quality. |
Dependency edges
Inbound and outbound trust assumptions touching this protocol.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | outbound | accepts collateral | Compound III -> WBTC | Compound III Ethereum USDC Comet accepts WBTC as collateral or core liquidity |
| medium | outbound | accepts collateral | Compound III -> wstETH | Compound III Ethereum USDC Comet accepts wstETH as collateral or core liquidity |
| medium | outbound | accepts collateral | Compound III -> USDC | Compound III Base USDC Comet accepts USDC as collateral or core liquidity |
| medium | outbound | governed by | Compound III -> Ethereum | Compound governance depends on Ethereum Governor and timelock execution |
| low | outbound | settles on | Compound III -> Ethereum | Compound III deployment inherits Ethereum settlement risk |
| low | outbound | accepts collateral | Compound III -> WETH | Compound III Ethereum USDC Comet accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> cbETH | Compound III Ethereum USDC Comet accepts cbETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> WETH | Compound III Base USDC Comet accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> cbETH | Compound III Base USDC Comet accepts cbETH as collateral or core liquidity |
Blast radius
Highest-severity paths that could transmit risk into or out of this protocol.
| Severity | Direction | Edge type | Dependency path | Analyst label |
|---|---|---|---|---|
| high | outbound | accepts collateral | Compound III -> WBTC | Compound III Ethereum USDC Comet accepts WBTC as collateral or core liquidity |
| medium | outbound | accepts collateral | Compound III -> wstETH | Compound III Ethereum USDC Comet accepts wstETH as collateral or core liquidity |
| medium | outbound | accepts collateral | Compound III -> USDC | Compound III Base USDC Comet accepts USDC as collateral or core liquidity |
| medium | outbound | governed by | Compound III -> Ethereum | Compound governance depends on Ethereum Governor and timelock execution |
| low | outbound | settles on | Compound III -> Ethereum | Compound III deployment inherits Ethereum settlement risk |
| low | outbound | accepts collateral | Compound III -> WETH | Compound III Ethereum USDC Comet accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> cbETH | Compound III Ethereum USDC Comet accepts cbETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> WETH | Compound III Base USDC Comet accepts WETH as collateral or core liquidity |
| low | outbound | accepts collateral | Compound III -> cbETH | Compound III Base USDC Comet accepts cbETH as collateral or core liquidity |