Compound Foundation (@Compound_xyz): State of Compound — June 2026

State of Compound — June 2026 First Edition · A monthly read on what moved across Compound Welcome to the first edition of our State of Compound series. In this series we’ll cover recent activity across the Compound ecosystem. There's a lot happening across Compound at any given moment spanning markets, governance, risk, and engineering. Each edition brings it together in one place so whether you've been here since 2018 or just arrived, you can see how the protocol is doing. The Bottom Line: June tested Compound’s markets and operating layer. The main liquidation window cleared without protocol losses, reserves increased by roughly $342K during the June 1–8 risk window, and the following week returned to net growth. The community advanced updates across risk, governance, treasury, tooling, front-end access, and v4 preparation. By the Numbers June v3 Snapshot 💵 Active Borrows: $568M 🏦 Total Value Locked: $1.21B 📈 V3 Lifetime Borrows: $10.9B Market Signals Supply activity: $618.8M in gross volume Borrow activity: $289.5M in gross volume 162 liquidations across 5 chains $11M debt absorbed, +$391K to reserves Zero protocol losses What's Shipping WOOF, a technical service provider for the protocol, shipped a stack of upgrades. A new emergency-pause mechanism is live on the Linea and Scroll markets through the Comet service patch. This single switch can pause every asset type the moment a market needs it. Onchain partial liquidations are in development for cleaner, lower-slippage unwinds. An integration kit that lets exchanges, wallets, and fintechs embed Compound markets is targeting production in August. The Foundation also migrated the front-end to compound.xyz on June 29. The protocol is unchanged: smart contracts, markets, balances, and positions remain onchain, with no user action required. Governance Delegate rewards went live. Delegate compensation went live in May. The first tracking period began on May 11, and the first monthly report on June 3 showed $30,000 paid to eight active governance delegates under the program’s published participation standard. Delegate rebalancing wrapped. The Compound Governance Working Group reviewed treasury-delegated wallets against the 80% voting-participation standard over the trailing six-month window. The final allocation moved voting power away from delegates below the threshold and toward active applicants, with DAOplomats and Blockful joining the set and FranklinDAO gaining additional weight. The Treasury Management RFP closed on June 24 with 20 submissions. Compound opened an RFP for professional treasury managers to run a $20-25M mandate over treasury assets. The applicant pool ranged from institutional managers like Coinbase Asset Management and Invesco to crypto-native treasury and vault operators including Yearn, KPK, Steakhouse, Avantgarde, RockawayX, and others. Strategies span stablecoin liquidity, market-neutral yield, Bitcoin yield, tokenized/RWA exposure, and multi-sleeve treasury management. The process now moves into structured review, including third-party custody and contract architecture review, yield strategy review, finalist interviews, and governance approval via Snapshot. Risk Gauntlet began posting weekly market updates to the forum alongside its public risk dashboards, giving the community a cleaner read on supply flows, borrow flows, liquidation activity, utilization, reserves, and market-level risk. Market hygiene also moved forward. Scroll and Ronin were fully wound down earlier in June. The Linea and Mantle Comet deprecation proposal later executed onchain, setting supply caps to zero, reducing borrow collateral factors, and updating interest-rate parameters to reduce reserve drawdown while leaving liquidation factors unchanged. Gauntlet also proposed and executed interest-rate model updates for the Optimism USDC and USDT markets. The update raises the borrow-rate base and flattens the slope below the kink, shifting the markets toward earlier reserve break-even at mid-range utilization. Building Toward v4 With v4 funding approved, the Foundation is focused on execution: expanding technical capacity, continuing product and architecture work, and designing the next phase of Compound market development. That work includes continued conversations with builders, partners, and institutions exploring onchain credit. What We're Watching Mantle, Linea, and MaticX deprecation proposals passed onchain Treasury Management RFP screening and diligence Optimism USDC and USDT IRM updates A Partnership Spotlight campaign from the Foundation, spotlighting the partners who helped build Compound. First up DeFi Saver. State of Compound is published by the Compound Foundation, a mission-aligned nonprofit supporting the growth of Compound, the protocol that helped invent onchain lending. Each edition resurfaces the protocol's recent work. See you next month. This update is for informational purposes only and is not financial, investment, legal, or tax advice.