Compound vs Morpho

Compound4.0/5

VS

Morpho4.5/5

Feature	CompoundVisit	MorphoVisit
Ratings
Our score	4.0/5	4.5/5
User rating	No reviews yet	No reviews yet
Security & track record	4.5	4.5
Rates	4.0	4.5
Market depth	3.5	5.0
Ease of use	4.0	4.0
Decentralization	4.0	4.5
Specs
KYC required	No	No
Lending model	Isolated markets	Isolated markets
Chains	Ethereum, Arbitrum, Base	Ethereum, Base, Hyperliquid, Other
Main collateral assets	ETH, WBTC, USDC, USDT	cbBTC, USDC, ETH, PAXG
Flash loans	No	Yes
Permissionless markets	No	Yes
Audited	Yes	Yes
Bug bounty	Yes	Yes
Governance token	COMP	MORPHO
Isolated markets	Yes	Yes
Real-world-asset collateral	No	Not disclosed
Own stablecoin	No	No
Rates	Variable	Variable and fixed
Company
Founded	2017	2021
Headquarters	—	France
Investors	Dragonfly, Polychain Capital, a16z crypto	Paradigm, Ribbit Capital, a16z crypto, Hack VC +4
Strengths and weaknesses
Pros	Audited by OpenZeppelin and ChainSecurity with a $1M bug bounty Processed $480B in all-time deposits and borrows since 2018 No KYC required to supply or borrow on standard markets Active on Ethereum, Base, and Arbitrum	Isolated markets prevent bad debt in one asset from impacting other protocol pools Over 30 independent smart contract audits and formal verification by Certora Supported by $175M in institutional backing from Paradigm, a16z crypto, and Ribbit Vault fee changes require an onchain timelock before curators can enforce them
Cons	Lacks an umbrella safety module to cover protocol-wide bad debt Borrow rates vary with base-asset pool utilization Does not support permissionless market creation by users Borrowing is restricted to only one designated base asset per pool	Vault depositors take on discretionary risk from third-party curator allocations Isolated pools fragment liquidity across individual debt and collateral pairs April 2025 frontend bundler update caused an approval bug that exposed user funds
Best for	USDC and WETH borrowers, Suppliers avoiding rehypothecation risk, Users seeking yield on supported EVM networks	DeFi lenders seeking risk-isolated markets, Borrowers requiring fixed-rate crypto terms, Passive yield depositors using curated vaults

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