Compound V3

Compound V3 receives a B- risk grade (31/100) from Hindenrank, where lower scores indicate lower risk. Moderate risk — battle-tested since 2018 but proven vulnerable to governance attacks and has the largest DeFi accounting bug on record One of DeFi's oldest lending protocols where you deposit crypto to earn interest or borrow against your holdings. It manages $1.3B in deposits and has raised $79M. Its C+ grade reflects a history of governance attacks ($24M stolen via a vote in 2024) and a past $147M accounting bug.

The key risks identified for Compound V3 are: (1) In 2024, a group of whales coordinated a governance vote (Proposal 247) to steal $24M from the treasury. Low voter turnout makes this attack repeatable (2) A past bug accidentally gave away $147M in rewards. This was the largest accounting error in DeFi history and shows the code can have expensive surprises (3) Each lending market uses only one borrowable asset. If everyone wants to borrow at once, you can't withdraw your deposits until borrowers pay back, potentially locking your money for days

Compound V3 scores 31/100 across eight risk dimensions: Mechanism Novelty: 0/15, Interaction Severity: 8/20, Oracle Surface: 2/10, Documentation Gaps: 1/10, Track Record: 5/15, Scale Exposure: 7/10, Regulatory Risk: 2/10, Vitality Risk: 6/10. The highest risk area is Scale Exposure at 7/10.

Among 90 rated Lending protocols on Hindenrank, Compound V3 ranks #24 by safety (lowest risk score = safest). Its 31/100 risk score and B- grade place it among the safer Lending protocols.

Compound V3 scores 5/15 on the Track Record risk dimension, indicating some history of security incidents or exploits. Higher scores reflect more severe or frequent incidents. Review the full risk report for details.