Compound III on herrenlos: base-asset lending with real collateral

herrenlos's Lending tab aggregates on-chain money markets from Morpho, Aave, and Compound III — you compare the real markets side by side and act on them from your own wallet. This post is about Compound III specifically: what it is, how its model differs from the other two, and precisely what's wired up in the app today.

What Compound III is

Compound III (its contracts are called Comet) organizes a market around one base asset. On a given Comet, the base asset — say USDC, or WETH — is the only thing you earn interest on and the only thing you can borrow. Around that base sits a set of collateral-only assets (WBTC, wstETH, cbETH, and so on): you can post them to back a loan, but they earn no interest and can't themselves be borrowed. One borrowable base, many collateral backers.

That's a deliberately different shape from the other two providers herrenlos lists:

• Morpho markets are isolated pairs — one collateral asset against one loan asset, each pair its own market.
• Aave is a pooled model — supply any listed reserve and it becomes collateral, then borrow against it from a shared pool.
• Compound III is one base + a basket of collateral — closer to "deposit these assets to borrow this one."

None is strictly better; they suit different trades, which is exactly why herrenlos shows all three and lets the market page be the source of truth.

What you can do on herrenlos today

Compound III is fully interactive in the app, on Ethereum, Base, Arbitrum, Optimism, and Polygon:

• Compare markets — Compound Comets rank alongside Morpho and Aave in the markets table, with a provider filter so you can look at just Compound. Each market shows its live supply and borrow APY, size, and utilisation.
• Supply the base asset to earn the supply APY, and withdraw it whenever you want.
• Post collateral — pick any of the Comet's collateral assets and supply it (or withdraw it later). This is what unlocks borrowing.
• Borrow the base against that collateral, and repay when you're done.
• See your position and capacity — your base supply and debt, your posted collateral, and Comet-native signals derived from real on-chain reads: how much base you can still borrow, how much of your borrow limit you're using, and whether the position is comfortably collateralized. These are honest Compound metrics, not a borrowed Aave-style number.

Compound III also pays COMP incentives on some markets. herrenlos reads and shows your accrued, unclaimed COMP on the market page; where claiming is enabled, it sends that COMP straight to your own wallet — no approval step and no fee.

A couple of Comet quirks worth naming, because the app names them too: on Compound III borrowing is literally withdrawing base you don't hold, and repaying is supplying base while you're in debt — herrenlos labels the actions plainly so the mechanics aren't a surprise.

Non-custodial, the whole way

Every action is built as an unsigned transaction on herrenlos's server and handed to your wallet to sign — herrenlos never holds your funds, never signs for you, and there's no account or KYC. Supplying a token uses a standard exact-amount ERC-20 approval (no blanket approvals), and both the approval and the action are signed by you.

Your keys never leave your wallet. Non-custodial isn't a setting — it's the only way herrenlos works.

Honest about the limits

• Collateral earns no interest. Only the base asset earns the supply APY — that's the Comet model, not a herrenlos limitation. Post collateral to borrow, not to earn.
• Paused markets are respected. If a Comet has supply or withdraw paused, herrenlos won't offer that action rather than letting a transaction revert.
• Operator kill-switches. Supply and borrow sit behind lending kill-switches; when one is off, browsing and positions still work and the risk-reducing repay/withdraw stay available — only that button is disabled, with honest copy.
• A quote is a snapshot. Rates move; APYs are live but any figure is an estimate until a transaction settles.
• It's one of three providers, in beta. Compound III is not the only lending option and herrenlos has no exclusive tie to it — sometimes a Morpho or Aave market is the better fit, and surfacing that side by side is the point.

Try it

Open Lending, filter to Compound, and pick a market to see its rates, supply or post collateral, and watch your borrow capacity update. For where lending and the rest of herrenlos are headed across providers, the roadmap lays it out.