Summary

We are seeking to gauge community support for the proposed plan to deprecate Compound Blue.

Motivation

Compound Blue launched in early 2025 as a collaborative pilot between Compound and Morpho to explore vault-based lending infrastructure on Polygon. The initiative leveraged Morpho’s vault architecture with Compound branding and incentives to test alternative deployment models and gauge demand for isolated lending markets on L2 networks. The trial attracted $188.73M in peak TVL (May 2025) and served as the launchpad for the first Apollo ACRED RWA looping strategy in DeFi.

When Compound Blue launched, Compound faced uncertainty around its future direction. Over the past year, Compound’s outlook has shifted significantly. The protocol now operates under strong leadership with a clear roadmap and active growth plans. With TVL declining organically following the tapering of incentives, and considering the attention and maintenance cost required maintaining a separate Morpho-based deployment no longer aligns with the DAO’s strategic direction.

Deprecation Plan

If approved, the Compound Blue deprecation will be implemented via the following steps:

• Discourage / inhibit new borrows (repayments, withdrawals, and liquidations remain active)
• Publish a banner on Compound Blue UI informing users of the deprecation plan
• 4-week wind-down period for users to close positions
• Users will retain the ability to interact with vaults on the Morpho frontend

Proposed Timeline

• Forum post (complete): Jan 26, 2026
• Snapshot vote: Jan 30 – Feb 6, 2026
• UI banner published: Feb 6, 2026
• Wind-down period: Feb 6 – Mar 6, 2026
• Frontend wind-down: Mar 6, 2026

Voting Options

YES – Approve the Compound Blue deprecation plan NO – Reject the Compound Blue deprecation plan

Note: This Snapshot vote is advisory/non-binding. Proposed dates are targets and subject to change.