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Benefit from Compound’s DeFi opportunities, using Kiln’s infrastructure
Compound
What is Compound?
Compound is a DeFi lending protocol, first launched in 2018. Users supply digital assets to decentralized markets and earn rewards on them, or post collateral and borrow against it, without a centralized intermediary. Rates adjust automatically with supply and borrowing demand.
Compound v3 runs each market as a separate deployment with its own collateral set, supply caps and liquidation parameters, so risk in one market stays contained. That includes its stablecoin markets, where supply rates and collateralized borrowing are available across the supported networks. Contract code and balances are publicly verifiable, v3 has been audited by OpenZeppelin and ChainSecurity, and Compound runs an active bug bounty on Immunefi that pays up to $1M for critical findings.
Why bringing DeFi to your users?
After staking, DeFi is the next source of digital asset rewards. Stablecoins are a ~$295 billion market and growing, but only a small share natively earns rewards for holders. In comparison, over 50% of PoS and dPoS assets are staked.
Kiln DeFi is the tech stack that enables integrators to seamlessly support and monetize DeFi in any Web3 product.
DeFi is the next step in your crypto earn offering after supporting staking. Diversify your rewards opportunities and benefit from service fees on your users’ stablecoin rewards.
Kiln DeFi is:
- 1100% onchain
- 2Seamless
- 3Control your own pricing model
How can you offer Compound rewards with Kiln DeFi?
You can start monetizing Compound’s opportunities in less than a week with Kiln DeFi.
To start offering Compound DeFi yields using Kiln’s tech stack, follow these steps:
- Deploy your custom Kiln DeFi vaults
- Integrate in your UI in less than a week (see docs)
- Your users start earning supply rewards
Reach out to us if you need help to integrate Kiln DeFi.
What are the rewards associated with DeFi?
In the context of Decentralized Finance (DeFi), “rewards” refers to the earnings that a user receives from supplying or lending their assets to a DeFi protocol such as Compound. DeFi platforms facilitate peer-to-peer lending and borrowing through smart contracts on blockchains like Ethereum.
In DeFi protocols like Compound, supply rates fluctuate mainly based on borrowing utilization. Higher borrowing demand increases supplier reward rates. Additional incentives and market volatility also impact these rates. Economic conditions, such as bull or bear markets, influence activity levels, with higher activity boosting yields and lower activity reducing them.
Supply rates on Compound are variable and set per market, so what an integrator earns moves with borrowing demand. Check Compound for live rates.
Why should you use Kiln DeFi to offer Compound rewards?
Kiln is the leading enterprise-grade staking platform, enabling institutional customers to earn rewards on their digital assets or integrate our tech stack into their products. The API-first platform supports fully automated rewards, data, and commission management.
With Kiln DeFi, our clients seamlessly access a wide range of protocols like Compound and assets without having to build commercial agreements and integrating different deposit/withdraw flows for each DeFi protocol.
Gain control with comprehensive reporting and monitoring of your Compound DeFi positions, rewards, and audited smart contracts.
Learn more about Kiln DeFi
Protocol card
Supported assets
USDC, USDT, USDC.e, USDS
Supported networks
Ethereum, Base, Arbitrum
Supply APR
Variable by market
TVL (Aug 2026)
$1.1B+
Compound FAQ
What is Compound?
Compound is a DeFi lending protocol, first launched in 2018. Users supply assets to decentralized markets and earn rewards, or post collateral and borrow against it.
Rates are set automatically by supply and borrowing demand in each market, and each Compound v3 market carries its own collateral set, supply caps and liquidation parameters. See Compound’s docs for the current markets.
What stablecoins or tokens are supported on Compound with Kiln DeFi?
Kiln DeFi supports Compound v3 stablecoin markets, including USDC, USDT, USDC.e and USDS.
What are the rewards associated with Compound and Kiln DeFi?
Rewards are based on the supply and borrowing demand for each asset. As the borrowing demand for an asset increases, the reward rate also increases. Check directly with Compound for the latest rates.
Is there a minimum amount of assets to lend on Compound?
You can supply any amount you wish, with no minimum or maximum limits. However, it's important to note that for very low amounts, the transaction costs may exceed the expected earnings.
Do the end users of the integrator maintain custody of their assets when lending on Compound?
No, lending on Compound means you will deposit your assets into their lending protocol (a smart contract) but only you have the right to withdraw your assets.
Is there a lockup period when lending assets on Compound?
No, you can withdraw your assets at any time, provided the lending pool has sufficient liquidity (i.e., it is not fully borrowed). If the pool lacks liquidity, you may need to wait for borrowers to repay their loans to free up funds.
It is a rare occurrence for a lending pool to lack liquidity, as in the event of limited liquidity borrowing rates are automatically adjusted upwards to encourage loans to be repaid.
How do I get started with Kiln DeFi?
Contact your account manager or complete our form to begin the Kiln onboarding process and access our suite of solutions.