Compound

Compound

2026-09-29 11:21:27

Compound Foundation accused of using DAO funds to buy COMP and vote on proposals

Compound Finance is facing another governance dispute after community member ugurmersin accused the Compound Foundation of misappropriating 8.42 million DAI. According to a post on the protocol’s governance forum, the funds were used to purchase 344,780 COMP, which were then delegated to the foundation’s voting address and used in two governance votes. One of those proposals included a $14 million transfer to the foundation for one year of development work on the v4 protocol. The foundation rejected the accusation and said its actions were in line with the terms attached to the funds. It argued that Proposal 536, passed in February, did not prescribe exactly how the money had to be spent and only barred discretionary trading or speculative activity, non-essential operations, and foundation overhead, personnel, or vendor costs. The foundation also said the converted assets were used to support protocol operations and governance continuity, and that the assets remain owned by the DAO. The dispute comes as Compound marks its eighth anniversary. Protos noted that the protocol has seen repeated governance, technical, and security controversies over the years, including conflict-of-interest claims, a governance attack proposal in 2024, excess reward distribution in 2021, a frozen cETH market after a faulty upgrade, front-end hijacks, and a compromised social media account used for phishing.

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Compound

2026-09-29 11:05:00

Compound Foundation’s COMP Purchase Faces Scrutiny as Governance Fight Deepens

A post published on Compound’s governance forum on Sept. 28 accused the Compound Foundation of swapping 8.42 million DAI from DAO-controlled v2 reserves into COMP, then delegating the voting power to its own address 58 minutes before a key proposal snapshot. The post, written by ugurmersin, argued that the move helped push through the $52 million V4 plan and a transfer of treasury management authority. On-chain records cited in the report, and an independent review by Bitquery, confirmed the core asset path described in the allegations. The Foundation later acknowledged the transactions but said the purchases fell within the scope of prior authorization to maintain a COMP reserve for governance execution. It also said the assets still belonged to the DAO and were not used for Foundation operating expenses. The dispute became more complicated after Bitquery highlighted that ugurmersin had publicly said Humpy was delegating votes to him. Humpy has been tied to several previous governance battles in DeFi, including Balancer, SushiSwap, and Compound. Records reviewed by Bitquery also showed a cluster of wallets linked to Humpy had recently amassed substantial voting power, passed Proposal 608 backed by ugurmersin, and then blocked Proposal 609. That broader context has turned the controversy from a narrow treasury-use complaint into part of a longer struggle over control of Compound governance.

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Compound

2026-09-28 09:58:53

Community member alleges Compound Foundation misused v2 DAI reserves

A Compound community member, ugurmersin, said on Sept. 28 that the Compound Foundation misused v2 DAI reserves that had been placed under its custody earlier this year. According to the claim, Proposal 536 in February transferred about 8.42 million DAI to the foundation with clear restrictions: the funds were to be used only for protocol operations, could not be used for speculative trading, still belonged to the DAO, and were not meant to cover the foundation’s own expenses. ugurmersin said on-chain records show the funds were later sent to a trading platform and exchanged for about 344,800 COMP. The tokens were then delegated to the foundation’s voting address roughly 58 minutes before voting closed on Proposals 580 and 582. The community member further alleged that this helped push nearly all DAO funds into TMC and secure passage of a V4 plan worth about $52 million that benefited the foundation, while the funds were still being described publicly by multiple parties as “liquidity DAI.” The Compound Foundation had not responded at the time of publication.

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Compound

2026-09-28 09:55:43

Compound Foundation Accused of Breaching Limits Set in Proposal 536

Compound Foundation has been accused of violating restrictions tied to Proposal 536, according to a disclosure cited by ChainCatcher and attributed to Compound community member ugurmersin. Under that proposal, 8.42 million DAI from the decentralized autonomous organization, or DAO, reserves was entrusted to the foundation for management. The proposal also set clear boundaries on how the funds could be used. It stated that the allocation was limited to supporting protocol operations, while independently trading or speculating with the funds was explicitly prohibited. The proposal also barred the foundation from using the DAI to finance its own business activities. The claim, as presented in the source, focuses on whether the foundation’s handling of the entrusted DAO reserves stayed within those stated limits. No additional details on the alleged conduct were provided in the input.

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Compound

2026-09-28 09:49:56

Compound Foundation accused of swapping 8.42 million DAI reserves into COMP for governance votes

Chain data flagged by ugurmersin has sparked accusations that the Compound Foundation improperly used the protocol’s v2 DAI reserves. Under Proposal 536, passed in February, 8.42 million DAI in DAO reserves was placed under the foundation’s management with clear restrictions: the funds could only support protocol operations, could not be used for proprietary trading or speculation, remained fully owned by the DAO, and could not finance foundation-specific operations. On-chain records cited in the report show the DAI was sent to an exchange, swapped into 344,780 COMP, and delegated to the foundation’s own voting address. The COMP was then transferred back 58 minutes before voting closed on Proposals 580 and 582. The accusation says the foundation used the voting power to help push measures that would place nearly all DAO funds under TMC management and approve a $52 million V4 plan. The foundation is also identified as one of TMC’s signers.

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Policy Regula

2026-09-16 00:31:36

Robert Leshner says failed Clarity Act vote leaves all sides worse off

Compound founder Robert Leshner said the Clarity Act failed to pass on the day of the vote, arguing that partisan maneuvering outweighed common sense and left no one better off. In his view, the result means the line between tokens and securities remains unresolved, while founders will still look overseas to build and raise capital. He also said investors will not receive more disclosure or protection, developers of decentralized systems gained no added safeguards, banks remain constrained around reward-bearing stablecoins, and government employees still lack ethical guardrails in relation to crypto. Leshner added that he feels most disappointed for people in the industry, as well as lawmakers in both the House and Senate who had worked on the bill over a long period, and said the outcome slightly dimmed the glow of U.S. leadership.

780

Compound

2026-09-08 17:33:14

Compound launches institution-only lending market and says demand exceeded supply on day one

Compound Foundation has rolled out an institution-only lending market, three weeks after relaunching the protocol around institutional credit. The product separates institutional borrowing from retail activity by giving whitelisted borrowers their own collateral set, loan-to-value ratios, and direct point of contact. The market, built on Compound v3, allows institutions to borrow USDC against ETH, wstETH, WBTC, and cbBTC. Compound said the market was oversubscribed at launch, with DeFi Saver, K3/Nexo, KPK, and Yearn participating, though it did not disclose the amount subscribed. The launch is the first public milestone delivered under the $52 million program approved by Compound DAO in August. Only $14 million of that budget has been transferred to the Foundation’s multisig so far, while the remaining $38 million remains in reserve pending additional milestones. The protocol currently holds $1.53 billion in total value locked, with $638 million borrowed, according to the article, and ranks sixth among lending protocols on DefiLlama. Compound says the new institutional market is the first in a planned series designed around different collateral types and borrower profiles as it tries to regain scale in onchain lending through tailored terms and service rather than rate competition alone.

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Compound

2026-08-23 14:48:32

Compound managing partner Michael Dempsey says humanoid robots matter most where they replace human life cost

Compound managing partner Michael Dempsey shared his view on the real value of humanoid robots in a post on X, according to a Techub News item. Dempsey said the point of humanoid robots is not simply to replace labor cost. Instead, he argued that their real significance lies in fields where they can replace the cost tied to human life. The brief report did not add further details beyond that statement. Techub attributed the item to @Delphi_Digital.

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