This requires a governance proposal, which has been initiated. https://www.tally.xyz/gov/compound/proposal/492?govId=eip155:1:0x309a862bbC1A00e45506cB8A802D1ff10004c8C0
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Proposal 492 only allocates $5 million USDT from V2 reserves, while the current deficit in V3 USDT reserves is around $7.8 million. If the reallocated funds are not enough to cover the shortfall, does that mean the USDT market will remain paused even after Proposal 492 passes?
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we deposit usdt and has no exposure to dusd, so our funds are safe ?
No, additional funds are being set in motion from these Compound reserves. Doing so does not require a governance proposal. A more concrete timeline will be provided throughout the day.
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Thank you for the update — really appreciate your quick response and transparency.
I’ve been a long-time Compound supporter and user, with deposits peaking at around $1.3 million USDT at one point. I truly hope to see the protocol stabilize soon and restore full functionality for all users.
Thanks again for your hard work during this difficult situation.
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by supplying to the USDT market, you are agreeing to allow borrowers to deposit deUSD to borrow USDT. The yield you get is also coming from borrows against deUSD collateral.
for future reference, always check which collaterals are allowed for the market you’re supplying to. This is especially the case for protocols like Morpho where the curators configure which assets are allowed on a per market basis. The risk exposure is always based on the weakest link.
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Got it. I understand now.
These days, so many new “stablecoins” keep coming out and collapsing — it feels like trading fake assets for real ones.
Platforms really need to protect investors better in this environment.
I trusted Compound as a long-standing DeFi protocol, and since the yield is similar to Aave, I didn’t think to double-check which collaterals were being used in the pool.
I’ve never invested in high-risk products — I always choose stable and reputable platforms.
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im not new to compound sir, im old user always deposit eth and usdt, i never thought that this can happen to compound, i only use aave and compound, where i can check this info for the next time
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i think that synthetic or algorithmic stable currencies should not be allowed or with very low limits.
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To be honest, we’re not professionals and not very sensitive to market changes — that’s why we chose to trust Compound with our funds.
Through this incident, I’ve learned a lot and realized that Compound also has supporting reserve systems like Aera, which can allocate funds directly without always relying on additional DAO votes.
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i think that synthetic or algorithmic stable currencies should not be allowed or with very low limits.
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so what is the total debt?
I trusted Compound and deposited my funds here, but now I can’t withdraw my assets when I urgently need it. This situation is unacceptable — it has already been several days.
Why is the market still paused?
I used to trust Compound, but now I completely lose confidence.
If users’ assets can be arbitrarily frozen at the discretion of a few individuals, then it’s not DeFi but CeFi. Please lift the freeze as soon as you’ve confirmed that the assets have not been compromised.
some assets have been lost but compound is going to use the reserves to re-balance the pools and nobody will lose their funds.
I have just re-added 5m usdc to the pool after withdrawing everything yesterday.
I think that the governance has acted fast to prevent the worst, but this should serve as a lesson to be more careful when adding tokens that can be collateralized.
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this apply also for the USDT depositors ?
from what i could see on chain, after inkymaze’s hints, yes.
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If “this” means reserves to rebalance the pools, then yes, Compound has more than sufficient reserves
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thanks for clarification, community will feel comfortable now
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thanks for your hard work in this hard times, this will build long time trust
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