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
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
Fluid
Four audit firms, almost nothing else published
Radiant Capital
72-hour timelock, no licence at all
Spark
Publishes the close factor that most protocols hide
Silo Finance
Liquidation fee fixed at deployment, forever
Aave
49 audit reports and a stated governance delay
Euler
Governance limits enforced permanently in code
Kamino
Publishes what it charges, per market
Venus Protocol
The most precisely documented governance delays
Morpho
GPL-licensed with published liquidation curve
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.Compound — collateral and borrowing — checked
- 2.Compound III (Comet) — LICENSE — checked
- 3.Compound — governance — checked
- 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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