Compound

Compound v3 USDT

Lenders earn yield from interest paid by borrowers. Borrowers deposit collateral into the Compound v3 protocol, and then borrow overcollateralized loans from a pool of lenders. The interest paid by borrowers is distributed to lenders.

AUM

$189.31m-6.17%

Supply APY

3.13%+27.24%

BBRated Protocol

Updated Apr 2, 2026

Risk Rating

AAAAAABBBBBBCCCCCCD

This rating is based solely on publicly available information. The range from BB to A- reflects the gap between the current assessment and the potential rating achievable if all identified improvement areas are addressed.

SCS: Smart Contract Security

KMP: Key Management Permissions

M: Market

L: Liquidity

C: Collateral

PM: Protocol Mechanics

ICE: Infra Counterparty Exposures

PCE: Protocol Counterparty Exposures

G: Governance

FR: Financial Resilience

TLC: Team Legal Compliance

DT: Documentation Transparency

Potential Score

Provider risk assessed across Business, Operations, Reliability, and Security.

View the detailed scoring breakdown

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Contract Addresses

LendingPool

0x3Afd...0840

Timelock

0x6d90...3925

Governor Bravo

0xc0Da...6529

Oracle (USDT/USD Chainlink)

0x3E7d...e32D

ProxyAdmin (CometProxyAdmin)

0x1EC6...8779

Implementation (CometWithExtendedAssetList)

0x7B2C...2044

GovernanceMultisig (Pause/Proposal Guardian)

0xbbf3...012c

Key Strengths

Extensive audit coverage from top security firms including OpenZeppelin, ChainSecurity, and Certora formal verification with an ongoing security partnership delivering continuous reviews of all upgrades and governance proposals
Full on-chain governance via Governor Bravo with 48-hour Timelock ensures no single entity can modify core contracts, requiring quorum vote and mandatory delay for all parameter changes
Active $1M Immunefi bug bounty with 254 assets in scope demonstrates commitment to proactive vulnerability discovery
Battle-tested through major market stress with zero bad debt across thousands of liquidations during significant drawdowns, validating the interest rate model and liquidation mechanics
Nearly 100% organic yield from borrower interest with minimal incentive dependency, confirmed by the elimination of COMP rewards in March 2026

Key Risks

Monitoring relies on manual multisig intervention rather than automated circuit breakers; the Pause Guardian requires multiple signatures with no automatic on-chain pause triggers despite active anomaly detection bots
Chainlink oracle dependency with no fallback mechanism as flagged by security auditors, creating single-point-of-failure risk for price feeds
Governance voting power concentrated among a small number of delegates, demonstrated by a governance attack that passed despite community opposition before negotiated cancellation
DAO treasury concentrated in volatile assets with minimal stablecoin diversification, alongside structural TVL and revenue decline from historical peaks
USDT counterparty risk from Tether's weak stability assessment and MiCA non-compliance constrains Strategy scores regardless of protocol-level quality