# What is Compound? V3 Comets and When to Skip It

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**Publisher:** Decentralized Finance Publication (https://decentralized-finance.io)
**Author:** Kaiser Khan
**Reviewed by:** Kaiser Khan, Editor in Chief
**Category:** Top DeFi Protocols
**Updated:** June 2026
**Trust:** Independent, ad-free editorial research. No display advertisements, no paid protocol coverage, no affiliate-driven rankings.

## Summary

Use Compound V3 at app.compound.finance when you want a simple one-base-asset market (for example USDC) rather than Aave’s multi-asset pool. Skip Compound if you need eMode LST loops or many collateral types on one account. Educational research, not financial advice.

## Should you use Compound?

Yes — if a V3 Comet’s single base asset matches what you want to supply or borrow, and you prefer a simpler account than Aave V3. Skip it if you need wstETH eMode-style loops or a long collateral list. Read the Comet’s liquidation rules; they are not Aave’s health factor UI.

DeFiLlama snapshot 2026-08-27: about $1.4 billion TVL for this listing. That is lockup, not a safety rating — re-check the live figure before you size anything.

## What is Compound V3 and how do Comets work?

Each Comet has one base asset borrowers draw and a governed set of collaterals. Interest accrues on the base. Liquidations follow Comet parameters, not Aave’s eMode categories. COMP still governs; do not treat COMP as a claim on a bank coupon.

## Compound vs Aave — which should you use?

Aave is the default multi-chain lending surface in most explainers, including ours. Compound V3 is the tool when you want Comet simplicity around one base asset. Compare the specific market, not the brand. Historical COMP farming is not the 2026 product.

## Which Compound risks actually bite?

Liquidation on the Comet you chose, oracle prints, and governance parameter changes. A simpler design reduces some foot-guns; it does not remove smart-contract risk. Check you are on V3 in the official UI, not a leftover V2 interface with different mechanics.

## Where is the official Compound app?

The app we name is app.compound.finance. Confirm you are in a V3 Comet, not leftover V2. This page is whether a single-base market is the right shape versus Aave’s multi-asset pool. Click-path supply still belongs on a how-to, not here.

## Frequently Asked Questions

- What is Compound? A lending protocol. V3 Comets are single-base markets at app.compound.finance. You supply or borrow one base asset against a governed collateral set — not Aave’s multi-asset account.
- Is Compound cheaper than Aave? Sometimes, on some Comets. Rates move with utilisation. Check the live market, not this page, and do not treat a screenshot as a locked rate.
- Should beginners start here or Aave? Aave is the more common first UI. Compound V3 is fine if you only wanted one base asset and can read that Comet’s liquidation rules.
- Does this page recommend COMP? No. Educational research only. We do not recommend supplying, borrowing, or buying COMP.

## Sources

- [Compound](https://app.compound.finance): Official app
- [Compound on DeFiLlama](https://defillama.com/protocol/compound-v3): Live TVL

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