Compound III

Compound III (Comet) is a lending protocol in which each market lends one base asset, such as USDC or ETH, against several collateral assets. It is a redesign of the earlier Compound money markets and is governed by COMP holders.

Other versions of this protocol: Compound V2 (legacy).

Rating B: 1 restriction: Wallet screening. Lending · Ethereum, Arbitrum, Base, Polygon, Optimism, Scroll, Mantle, Linea, Unichain, Ronin.

Official app: app.compound.xyz. Frontend code: github.com/compound-finance/webb3-frontend.

Restrictions

• Geo Block: ToS only. ToS: IP-based geo-blocking.
• Feature Block: no.
• Wallet screening: yes. own screening.compound.xyz (POST {address} -> {flagged}) + a hardcoded list of 38 addresses, incl. the Tornado Cash router 0x8589…DA16 (TC delisted from SDN in 2025, still blocked here) Where it runs: API. Fail mode: fail-closed (an error or a timeout of the screening call marks the address as blocked ("Unexpected error" overlay)).
• VPN / Tor detection: ToS only.
• Terms of Service: www.compound.xyz/terms-of-service, Last updated 2026-08-11. generic OFAC/UN/UK/EU + Foundation discretion.

Notes

The public repo has only the static list in src/helpers/sanctions.ts; production also calls screening.compound.xyz (fail-closed). The legacy v2 app is a separate entry (Compound V2).

Live checks

• WebFetch (US): normal page
• app.compound.finance -> app.compound.xyz (domain moved, 2026-10-10)
• screening.compound.xyz (2026-10-10): SDN -> {"flagged":true}; control 0x2222…2222 -> {"flagged":false}

Evidence

• src/helpers/sanctions.ts
• src/contexts/Web3Context.tsx
• app.compound.xyz/assets/main-Bkduosrm.js
• screening.compound.xyz

Checked 2026-10-10. All interfaces · Methodology