# Compound v3 Markets: Rates, Collateral and Reserves

> Compound v3 markets on every chain: supply and borrow APY, utilization, collateral by asset, reserves and liquidations, read from each Comet contract.

Markdown copy of https://voltfincrypto.com/apps/compound-v3-markets

**Question:** What do Compound v3 markets pay and charge today, and how much collateral and reserves stand behind each one?

- Kind: Dashboard in Voltfin Vantage
- Topic: [DeFi](https://voltfincrypto.com/topics/defi)
- Chains: Multi-chain, Ethereum, Base, Arbitrum, OP Mainnet, Polygon, Scroll, Mantle, Unichain
- Status: Planned. The data is not published yet, so this page states no figure; each figure will open its receipt when it is.

Compound v3, also called Compound III, runs one market per base asset: each Comet contract lends a single asset such as USDC, USDT or WETH. Every other asset it lists is collateral, which can be posted but not borrowed and earns no interest. This dashboard reads each market's supply and borrow rates, utilization, collateral and reserves on every chain where Compound v3 is deployed.

That design changes where the risk sits. Suppliers of the base asset are the only lenders, so a market's safety rests on its collateral factors, its price feeds and its reserves. When a position becomes liquidatable, the protocol absorbs it: it takes the collateral onto its own books, clears the debt from reserves and later sells the collateral at a discount through buyCollateral. Absorbed debt, collateral sales and reserves are shown beside the rates for that reason.

Pick a market to see its rates, the collateral behind its loans and its reserves against the target governance has set. Rates come from the Comet contract's own rate functions at a named block, and COMP rewards are kept apart from the base rates because they depend on a reward speed and the COMP price.

## Blueprint

### Markets

Rates, supply, borrow and reserves for each Compound v3 market.

- **Supply APY** (%): The base asset supply APY of the selected market, from getSupplyRate at its current utilization.
- **Borrow APY** (%): The borrow APY of the same market, from getBorrowRate at the same block.
- **Utilization** (%): Base asset borrowed over base asset supplied in the selected market, from getUtilization().
- **Reserves against target** (USD): The selected market's reserves from getReserves(), valued in USD, shown with its targetReserves().
- **Every Compound v3 market**: Each market with chain, base asset, supply APY, borrow APY, utilization, supplied, borrowed, reserves and estimated COMP reward APR.
- **Rates and utilization by day** (%): Supply APY, borrow APY and utilization of the selected market by day, with governance changes to its rate settings marked.

### Collateral and liquidations

What backs each market's loans, and what the protocol absorbed and sold.

- **Collateral posted** (USD): Collateral posted in the selected market, totalsCollateral for each asset valued at the market's price feeds.
- **Debt absorbed, 30 days** (USD): Debt the protocol absorbed in the selected market over the last 30 days, from AbsorbDebt events.
- **Collateral by asset**: The selected market's collateral by asset, with each asset's borrow and liquidation collateral factors beside it.
- **Absorbs and collateral sales by day** (USD): Debt absorbed and collateral taken by day, and the absorbed collateral later sold through BuyCollateral, with each transaction.

Filters: Market (Every Compound v3 market by chain and base asset, such as USDC on Ethereum); Period (Last 7, 30 or 90 days).

## How it will be measured

- Supply and borrow rates come from getSupplyRate and getBorrowRate at the market's current getUtilization(), per-second rates converted to APY with per-second compounding.
- Total supplied and borrowed are totalSupply() and totalBorrow() of the base asset; collateral per asset is totalsCollateral(asset), valued with the market's own price feed through getPrice at the same block.
- Reserves are getReserves(), which turns negative if absorbed debt outruns what the market holds, shown against targetReserves(), the level at which the market stops selling absorbed collateral.
- Liquidations are AbsorbDebt and AbsorbCollateral events and collateral sales are BuyCollateral events, each valued at the block it happened.
- COMP rewards use the market's baseTrackingSupplySpeed and baseTrackingBorrowSpeed with its CometRewards configuration and are valued at the COMP oracle price; they are never added to the base rates.

## Data it needs

- `lending_markets_daily` (to build): Supply, borrow, utilization and rates per lending market (Aave, Morpho, Spark, Compound, Euler and others) at day end.
- `liquidations` (to build): Every liquidation on major lending markets and perp venues: collateral seized, debt repaid, liquidator, and the price at the time.
- `protocol_revenue_daily` (to build): Fees users paid to each protocol and the part kept by the protocol or its token holders, per protocol and day, including buybacks.
- `native_prices_daily` (to build): Reference prices of major assets read from on-chain oracle feeds (Chainlink latestRoundData) at each day's last block, with each round's update time.
- Source: Comet getUtilization(), getSupplyRate and getBorrowRate on every Compound v3 market at hourly blocks
- Source: Comet totalSupply(), totalBorrow(), getReserves() and targetReserves()
- Source: Comet totalsCollateral(asset) and getAssetInfoByAddress(asset) for each listed collateral
- Source: AbsorbDebt, AbsorbCollateral and BuyCollateral events
- Source: CometRewards configuration and each market's base tracking speeds
- Source: Each market's price feeds through Comet getPrice at the same block

## Questions

### What is Compound v3?

Compound v3, or Compound III, is the current version of the Compound lending protocol. Each market lends one base asset, such as USDC or WETH, against a list of collateral assets. Collateral cannot be borrowed and earns no interest, which keeps each market's risk limited to its base asset and its listed collateral.

### Does collateral earn interest on Compound v3?

No. Only the base asset earns interest. Collateral sits in the market so that borrowers can draw the base asset against it, and it is never lent out, so a depositor who wants interest supplies the base asset instead.

### How do liquidations work on Compound v3?

When a borrower's debt passes the liquidation collateral factor, anyone can call absorb. The protocol takes the collateral, clears the debt using its reserves and later sells the collateral at a discount through buyCollateral. The borrower loses the liquidation penalty set for each collateral asset.

### What are Compound reserves?

Reserves are the share of a market's interest kept by the protocol, plus proceeds from selling absorbed collateral. They take liquidation losses first. Once reserves reach the target set by governance, the market stops selling absorbed collateral until they fall below it.

### How is Compound v3 different from Compound v2?

Compound v2 let every listed asset be supplied and borrowed through cTokens, so risk was shared across all markets. Compound v3 separates markets by base asset, keeps collateral idle and replaces liquidators seizing collateral directly with an absorb-then-sell process run through the protocol.

### Are COMP rewards included in the APY?

No. COMP rewards accrue at a speed set by governance and depend on the COMP price, so they are shown as their own estimate beside the base supply and borrow rates, never folded into them.

## Glossary

- **Base asset**: The single asset a Compound v3 market lends and borrows, such as USDC or WETH.
- **Borrow collateral factor**: The share of a collateral asset's value a borrower may draw in the base asset. A higher liquidation collateral factor sets the point where the position can be absorbed.
- **Absorb**: Compound v3's liquidation step: the protocol takes an underwater account's collateral and clears its debt from the market's reserves.
- **Target reserves**: The reserve level set by governance at which a market stops selling the collateral it has absorbed.

## Related apps

- [Aave Rates: Borrow and Supply APY by Market](https://voltfincrypto.com/apps/aave-rates)
- [DeFi Lending Rates Table: Utilization and LTV by Market](https://voltfincrypto.com/apps/defi-lending-rates-table)
- [DeFi Lending Market Share: Aave, Morpho, Spark and Euler](https://voltfincrypto.com/apps/defi-lending-market-share)
- [DeFi Liquidations Tracker: Lending and Perp DEXs](https://voltfincrypto.com/apps/defi-liquidations-tracker)
- [DeFi Lending Bad Debt Tracker](https://voltfincrypto.com/apps/defi-lending-bad-debt)
- [DeFi TVL by Chain: Total Value Locked Rankings](https://voltfincrypto.com/apps/defi-tvl-by-chain)

Build it in Voltfin Studio: https://app.voltfincrypto.com/signup?next=%2F