Compound III product
Overview
Compound III, codenamed Comet, is the third generation of the Compound lending protocol and a deliberate simplification of the model Compound v2 pioneered. It is an EVM-compatible protocol in which users supply crypto assets as collateral in order to borrow a single designated base asset, and where suppliers of that base asset earn interest. The defining change from v2 is that each deployment has exactly one borrowable asset — initially USDC on Ethereum — rather than allowing every listed asset to be borrowed against every other. That single-base-asset structure contains risk: collateral assets are not lent out, so a bad debt event in one collateral market cannot cascade through the whole pool the way it can in a fully cross-lending design. Each market is a separate deployment, so Compound III scales by launching additional Comet instances rather than by listing more borrowable assets in one pool. A rewards contract can distribute tokens including COMP to suppliers and borrowers, and the protocol remains governed by COMP tokenholders. Deployment artifacts are published in the Comet repository. Compound III (Comet) launched on Ethereum with USDC as the sole borrowable base asset, replacing v2's pooled cross-lending design with per-market deployments in which collateral is not re-lent.
Within the DeFi Intel graph, Compound III connects to 12 tracked entities, most strongly to Ethereum, Arbitrum, Base.
Relations
Top connections in the DeFi Intel knowledge graph (confidence-weighted, 10 of 12 total).
| Relation | Connected entity | Confidence |
|---|---|---|
deployed_on | Ethereum | 95% |
deployed_on | Arbitrum | 95% |
deployed_on | Base | 95% |
deployed_on | Polygon | 95% |
launched | Compound | 95% |
deployed_on | Optimism | 90% |
deployed_on | Linea | 90% |
deployed_on | Mantle | 90% |
deployed_on | Unichain | 90% |
deployed_on | Ronin | 90% |
Frequently asked questions
What is Compound III?
Compound III is a product tracked in the DeFi Intel knowledge graph. It is connected to 12 other tracked entities, most strongly to Ethereum, Arbitrum, Base.
What type of entity is Compound III?
Compound III is classified as a product (product) in the DeFi Intel knowledge graph.
What is Compound III connected to?
In the DeFi Intel knowledge graph, Compound III is linked to 12 other tracked entities, most strongly to Ethereum, Arbitrum, Base.
Live news feed, full graph, and search.