Compound V3
What to watch for
Smart-contract risk
Any funds in a DeFi pool sit inside a smart contract that can be exploited or contain bugs. An exploit = funds are lost forever. Before depositing, check Compound V3's age, audits, and incident history.
Stablecoin depeg
A stablecoin in the pool can lose its dollar peg — especially newer or algorithmic ones. Check the issuer and its reserve transparency.
Rewards in protocol tokens
Part of the yield (0.1 %) is paid in the protocol's own token. If that token's price drops, your real yield drops too. Emissions can also be reduced or end.
Chain risk (Ethereum)
Funds live on the Ethereum blockchain. If it halts, congests, or is attacked, access to funds can be temporarily lost. If the pool contains "wrapped" tokens from another chain (e.g. WBTC is a copy of Bitcoin on Ethereum), bridge risk also applies: a bridge hack means those assets are lost.
Go to Compound V3 and connect your wallet