Compound vs Venus Protocol

How Compound vs Venus Protocol compare on our ratings, lending protocol specs, funding, pros and cons.

VS
Feature
Ratings
Our score4.0/53.6/5
User ratingNo reviews yetNo reviews yet
Security & track record4.52.5
Rates4.04.0
Market depth3.54.5
Ease of use4.04.0
Decentralization4.03.5
Specs
KYC required No No
Lending modelIsolated marketsPooled
ChainsEthereum, Arbitrum, BaseBNB Chain
Main collateral assetsETH, WBTC, USDC, USDTNot disclosed
Flash loans NoNot disclosed
Permissionless markets NoNot disclosed
Audited Yes Yes
Bug bounty Yes Yes
Governance tokenCOMPXVS
Isolated markets Yes Yes
Real-world-asset collateral NoNot disclosed
Own stablecoin No Yes
RatesVariableVariable and fixed
Company
Founded20172020
Headquarters——
InvestorsDragonfly, Polychain Capital, a16z cryptoNot disclosed
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
  • Deep liquidity on BNB Chain with over $1.2B in total value locked
  • Audited by firms including OpenZeppelin, CertiK, and PeckShield
  • Permissionless wallet onboarding with no KYC checks
  • Isolated pools segregate risky collateral from the core money market
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
  • Suffered a $3.7M accounting exploit in March 2026
  • Borrow rates are variable and spike quickly during high utilization
  • VAI minting exposes borrowers to stablecoin collateral depeg risk
  • Undercollateralized positions face automated liquidation penalties
Best forUSDC and WETH borrowers, Suppliers avoiding rehypothecation risk, Users seeking yield on supported EVM networksBNB Chain crypto borrowers, Passive yield on EVM assets, XVS stakers seeking revenue share

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