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Compound Review

Timelock-controlled, with a lapsed licence date

of 10

Compound III is controlled by the same Timelock contract that governs Compound v2, and its liquidation mechanics are documented in structure. Its BUSL change date of 31 December 2025 has passed while the licence file still reads BUSL, and no Comet audits could be found.

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Compound III licence

BUSL-1.1; change date 31 Dec 2025, passed; change licence GPL-2.0-or-later

Compound v2 licence

BSD-3-Clause

Governance

Timelock contract controls all Compound III instances

Timelock duration

Not stated

Comet audits

Not found

Scores

Fee disclosure
3.0
Licence & code openness
5.0
Liquidation terms
6.0
Governance & timelock
7.0
Audit disclosure
5.0

Each criterion carries equal weight. The overall score is the average of these 5 scores — (3.0 + 5.0 + 6.0 + 7.0 + 5.0) ÷ 5 = 5.2.

Pros

  • All instances of Compound III controlled by the Timelock contract
  • Liquidation structure documented: separate borrow and liquidation collateral factors
  • Compound v2 remains BSD-3-Clause with an extensive published audit history
  • v2 audits named: Trail of Bits, OpenZeppelin, Certora and Gauntlet

Cons

  • The stated BUSL change date of 31 December 2025 has passed, yet the file still reads Business Source License
  • No audit reports or audits directory could be found for Compound III (Comet)
  • Timelock duration, voting period and proposal threshold are not stated in the v3 governance documentation
  • Reserve factor and per-market collateral factors are not published

A licence date that has come and gone

The Compound III licence file names a change date of 31 December 2025, after which the terms convert to GPL-2.0-or-later. That date passed nearly seven months before we checked, and the file in the repository still carries the Business Source License text. What follows legally is beyond what the page states; what a reader can see is a discrepancy between the stated date and the file.

Governance is real but undocumented in detail

All instances of Compound III are controlled by the same Timelock contract that administers Compound v2, and privileged functions accept only the Governor as caller. The v3 governance page does not state the delay duration, voting period or proposal threshold, referring instead to the v2 section.

The audit gap

Compound v2 has an extensive published audit history from Trail of Bits, OpenZeppelin, Certora and Gauntlet. For Comet itself we found no audits directory and no mention in the README. That is a notable absence for a protocol of this standing.

How it compares

Sources

Scored from published primary sources rather than hands-on use. Every figure above comes from one of the pages below, on the date shown. Manufacturers change prices and specifications without notice — if something here no longer matches the source, tell us and we will correct it.

  1. 1.Compound — collateral and borrowing — checked
  2. 2.Compound III (Comet) — LICENSE — checked
  3. 3.Compound — governance — checked
  4. 4.Compound v2 — security and audits — checked

Frequently asked questions

Is Compound III open source?

Its licence file is Business Source License 1.1 with a change date of 31 December 2025 — a date that has passed while the file still reads BUSL. Compound v2 is BSD-3-Clause.

Has Compound III been audited?

We could not find any published audit reports for Comet. Compound v2 has an extensive audit history from Trail of Bits, OpenZeppelin, Certora and Gauntlet.

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