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Compound V1 Review 2026: Ethereum Lending Risks

Compound V1 is an Ethereum lending market where users supply crypto assets or borrow against collateral. Check that a V1 market is still supported before interacting: Compound’s current website also describes newer products.

Ethereum

By the DappsAtlas editorial team · Updated Nov 6, 2026

DappsAtlas score

6.5/10

Good

Visit Compound V1

Our verdict on Compound V1

6.5/10

Compound V1 may suit Ethereum users who understand collateralized lending and want to supply assets or borrow without selling them. Its main strength is a straightforward lending model with market-driven rates and collateral requirements. The central caveat is that Compound’s current website focuses on the broader product and does not clearly show which V1 markets remain supported or publish their specific terms. Check market availability, liquidity, rates and liquidation conditions before depositing funds.

Score breakdown

How Compound V1 scores

Security: 6.0/10
Ease of use: 6.0/10
Fees: n/a
Features: 7.0/10

Scores run from 0 to 10 and are based only on facts we could verify. Where information was missing we mark the score n/a rather than guess.

What is Compound V1?

Compound V1 is an Ethereum lending protocol that connects people supplying crypto assets with borrowers seeking liquidity. Suppliers earn market-driven interest, while borrowers deposit collateral to secure loans. Compound lists COMP as its token and provides a governance section.

Compound’s current website presents Compound Finance more broadly and references Compound II. It does not clearly identify which markets remain available specifically in V1, or publish V1-specific assets, rates and collateral parameters. Confirm that a V1 market is still supported before interacting with it.

How Compound V1 works

Compound V1 pools supplied assets into lending markets. Suppliers make assets available to borrowers and earn interest; the rate varies with market conditions, including supply and borrowing demand. The homepage does not publish the exact rates or supported assets for V1 markets, so check the specific market before acting.

Borrowers deposit collateral and can borrow only within the market’s limits. If collateral value falls too far relative to the debt, the position can be liquidated. Supplying assets is not the same as holding them in a wallet: withdrawals depend on market liquidity, and smart-contract or asset-price risks remain.

4 features

Key features

Supply assets

Users can supply supported assets to a lending market and earn interest that changes with market conditions.

Borrow with collateral

Users can borrow against supplied collateral without selling it, subject to market-specific limits.

Collateralized loans

The protocol uses overcollateralization to reduce the risk that a borrower’s debt exceeds their collateral value.

COMP governance

COMP is named as Compound’s token, and the website includes a governance section.

Pros and cons

What we like

Combines asset supply and collateral-backed borrowing in one protocol.
Interest rates are market-driven rather than presented as fixed yields.
Overcollateralization is designed to reduce the risk of unpaid loans.
The current Compound site describes security reviews and a bug bounty program.

Watch out for

The current Compound website focuses on the broader product and references Compound II, so it does not clearly explain which markets remain available specifically in V1.
V1-specific supported assets, rates, collateral parameters and borrowing limits are not published on the homepage.
Borrowers can be liquidated if collateral falls below the required threshold; market volatility can make that happen quickly.
Fees and the names and scope of audits are not published on the homepage.
Depositors may not be able to withdraw immediately if a market lacks available liquidity.

Compound V1 fees

Compound does not publish V1-specific fees on its homepage. Supply and borrowing interest rates are market-driven, and blockchain transactions also require network gas; check the applicable market and transaction details before proceeding.

Is Compound V1 safe?

Compound’s homepage says the protocol uses independent audits, testing and ongoing security reviews, and advertises a bug bounty program. It does not name the audits or explain their scope on the homepage, so those claims do not establish that every V1 market or contract has been reviewed.

Using a lending protocol involves smart-contract, market-liquidity and asset-price risks. Borrowers can lose collateral through liquidation, and suppliers may face withdrawal delays if a market has limited liquidity. The homepage does not publish V1-specific regulatory or custody details. Use crypto services only where lawful; this protocol is not a gambling product.

5 steps

How to get started with Compound V1

1
Open Compound’s official app or documentation and confirm that the V1 market you intend to use is still supported.
2
Check the market’s supported assets, collateral rules, rates, liquidity and contract details before connecting a wallet.
3
Connect a compatible Ethereum wallet and make sure it holds the asset you plan to supply or borrow, plus ETH for transaction gas.
4
If supplying, review the market and transaction details before confirming your deposit.
5
If borrowing, check your collateral ratio and liquidation conditions, and leave room for price changes before confirming.

Open Compound V1

Who Compound V1 is for

Compound V1 is best suited to crypto users comfortable with Ethereum wallets, variable lending rates and the risk of liquidation. It is a poor fit for anyone seeking fixed returns, guaranteed withdrawals or clearly documented V1-specific market terms.

Compound V1 FAQs

What is Compound V1?

Compound V1 is an Ethereum-based crypto lending protocol. Users supply assets to lending markets to earn variable interest, or borrow assets by depositing collateral.

How does interest work on Compound V1?

Compound’s homepage describes yield as market-driven, but does not publish V1-specific supply or borrowing rates. Rates can vary with market conditions and the amount of assets supplied and borrowed.

Can collateral be liquidated on Compound V1?

Borrowing requires collateral, and the value of that collateral must remain sufficient relative to the loan. If it falls below the market’s required threshold, some collateral may be liquidated to repay the debt.

What is the COMP token?

Compound lists COMP as its token and provides a governance section. The current website does not explain V1-specific COMP incentives or token functions in detail.

What fees and audits does Compound V1 have?

Compound’s homepage does not publish V1-specific fees or a list of audit names and scopes. Check the relevant market and transaction details before supplying or borrowing.

Is Compound V1 a gambling site?

Compound V1 is a crypto lending protocol, not a gambling product. For any crypto service, review the relevant risks and local rules before using it.

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