In Focus:
Compound Finance

Compound III is an EVM compatible protocol that enables supplying of crypto assets as collateral in order to borrow the base asset. Accounts can also earn interest by supplying the base asset to the protocol.

Our Work with Compound Finance

1.1/

Compound V3 Economic Audit

Our collaboration with Compound Finance focuses on harnessing the power of the Chainrisk simulation engine to optimize risk parameters of the Compound V3 (Comet) protocol. This report delineates a comprehensive methodology aimed at calculating key risk metrics of the protocol. This optimization framework is pivotal for mitigating systemic risks and enhancing the overall stability of the protocol. By leveraging Chainrisk’s Cloud Platform, we conduct millions of simulations to evaluate the protocol’s Value at Risk (VaR) and Liquidations at Risk (LaR), ultimately providing recommendations for parameter adjustments.
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1.2/

PoW Thread on Compound Forum

Chainrisk is proposing to onboard the Compound community into its risk and simulation platform to test Compound V3 (Comet) Modules ( Interest Rates, Collateral and Borrowing, and Liquidations Module ), and new protocol upgrades in various market scenarios.This platform will support the community in stress testing the mechanism design of the protocol and bespoke protocol research with publicly available analysis and results.
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1.3/

Partnership Announcement

Chainrisk & Compound Finance have entered into a strategic partnership to improve the economic security of Compound V3 (Comet) markets. Compound V3 (Comet) is an EVM compatible protocol. This compatibility allows it to seamlessly integrate with the vast ecosystem of Ethereum-based applications & tools. The base asset for Compound V3 is USDC, a stablecoin that offers a stable value reference, which is crucial for borrowing & lending activities within the protocol.
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The Chainrisk simulation platform is designed to replicate real-world conditions to the greatest extent possible. By forking the blockchain at specific block heights, the platform provides a realistic environment for testing protocol features & stress scenarios. This partnership aims to leverage Chainrisk's advanced simulation & risk management tools to ensure the stability & robustness of Compound's DeFi protocol.
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1.4/

Milestone 1 Completion

Simulations will analyze a 53% WETH price decline over 1000 blocks in Ethereum's USDC market, which holds $1B TVL, including $440M in WETH supply (as of May 9, 2024).
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1.5/

Milestone 2 Completion

This update serves as an overview of the various test scenarios planned for the Economic Risk Simulation Engine being developed for Compound v3. The simulations aim to demonstrate the engine's capabilities in modeling & predicting economic risks within the decentralized finance (DeFi) ecosystem, specifically focusing on extreme market conditions & their impact on the Compound protocol.
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Platform overview
1.6/

Milestone 3 Completion

This update provides an overview of the recent economic audit conducted by Chainrisk on Compound V3, highlighting efforts to optimize risk management and enhance protocol stability. The audit involved stress testing the protocol under various market conditions on the Arbitrum One Chain, particularly within the USDC market. Through advanced simulations, Chainrisk aimed to identify optimal risk parameters that maintain capital efficiency while ensuring security, demonstrating the effectiveness of their risk management strategies within the decentralized finance (DeFi) ecosystem.
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1.7/

Add weETH as Collateral

Add weETH as Collateral to USDT, USDC and USDS markets on Mainnet
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1.8/

Add Collateral deUSD & sdeUSD

Add Collateral deUSD & sdeUSD (staked) on USDC/USDS/USDT on Mainnet
Learn more
1.9/

Deploy Compound V3 on Ronin

Deploy Compound III on Ronin
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1.10/

Deploy Compound V3 Sonic

Deploy Compound III on Sonic
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CHAINRISK BLOG

Recent research and blog articles

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Compound V3 Economic Audit Announcement

An in-depth overview of Chainrisk’s economic audit on Compound V3, focusing on advanced simulations on the Arbitrum One Chain. Discover how optimized risk parameters enhance security, capital efficiency, & resilience across various market conditions in DeFi.
October 18, 2024

Compound Finance 3rd Milestone Announcement

An overview of Chainrisk's economic audit on Compound V3, highlighting advanced simulations on the Arbitrum One Chain. This update focuses on optimizing risk management strategies, enhancing security, & improving capital efficiency across various market scenarios.
October 17, 2024

Compound Finance Update #2: Risk Simulation Overview

This update outlines the planned test scenarios for the Economic Risk Simulation Engine for Compound v3, focusing on modeling & predicting economic risks in DeFi under extreme market conditions to test protocol resilience, evaluate risk management, & identify vulnerabilities.
September 24, 2024

Chainrisk & Compound Finance Partnership Announcement

Chainrisk & Compound Finance have partnered to enhance the economic security of Compound V3 (Comet) by leveraging Chainrisk's simulation platform to test protocol features & stress scenarios, ensuring stability & robustness in the USDC-based, EVM-compatible DeFi protocol.
May 21, 2024
CHAINRISK BLOG

Recent research and blog articles

Compound V3 Economic Audit Announcement

An in-depth overview of Chainrisk’s economic audit on Compound V3, focusing on advanced simulations on the Arbitrum One Chain. Discover how optimized risk parameters enhance security, capital efficiency, & resilience across various market conditions in DeFi.
May 21, 2024

Compound Finance 3rd Milestone Announcement

An overview of Chainrisk's economic audit on Compound V3, highlighting advanced simulations on the Arbitrum One Chain. This update focuses on optimizing risk management strategies, enhancing security, & improving capital efficiency across various market scenarios.
October 21, 2024

Compound Finance Update #2: Risk Simulation Overview

This update outlines the planned test scenarios for the Economic Risk Simulation Engine for Compound v3, focusing on modeling & predicting economic risks in DeFi under extreme market conditions to test protocol resilience, evaluate risk management, & identify vulnerabilities.
October 21, 2024

Chainrisk & Compound Finance Partnership Announcement

Chainrisk & Compound Finance have partnered to enhance the economic security of Compound V3 (Comet) by leveraging Chainrisk's simulation platform to test protocol features & stress scenarios, ensuring stability & robustness in the USDC-based, EVM-compatible DeFi protocol.
September 24, 2024
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