Compound's fourth retreat in a month: a vote to pull 90 ETH and 42,000 USDC off Unichain
A Compound DAO vote closing November 3, with no votes against so far, would send reserves from its deprecated Unichain markets back to Ethereum. A bigger 534,530 USDT withdrawal from Polygon was filed and canceled within an hour.
Key points
- Compound proposal 621 would withdraw 42,000 USDC and 90 WETH in reserves from its Unichain markets and send them to the Compound Timelock on Ethereum.
- As of November 2, 2026, the vote had 522,240 COMP in favor and none against, above the 400,000 quorum. Voting is set to end November 3.
- Compound already pulled reserves from Ronin, Scroll and Mantle in October. A 534,530 USDT Polygon withdrawal (proposal 620) was canceled on October 29.
What is being voted on
Compound DAO is voting until November 3 on proposal 621, which would pull 42,000 USDC and 90 WETH in protocol reserves out of two Compound III markets on Unichain, a layer 2 network that settles to Ethereum. Reserves are the share of borrower interest the protocol keeps for itself.
- USDC market: 42,000 USDC out of 54,707.87 USDC in reserves when the proposal was created, sent to Ethereum through Circle's CCTP, which burns USDC on one chain and mints it on another.
- WETH market: 90 WETH out of 104.74 WETH, unwrapped to ETH and sent through Unichain's native bridge.
Both amounts end up at the Compound Timelock on Ethereum mainnet, the contract that holds DAO funds and runs approved changes. The proposal calls this the final step of the deprecation process.
Why some money stays behind
The proposal does not empty the markets. Open borrow positions remain, so a buffer of about 12,700 USDC and 14.7 WETH stays in place to keep the markets solvent. A later proposal can sweep the rest once those loans close.
The 90 ETH will not arrive at once. Withdrawals over the native bridge are finalized on Ethereum only after a challenge period, the window in which anyone can dispute the layer 2's state. The USDC lands after Circle attests the burn.
How Unichain got here
The wind-down started in July. In proposal 591, risk manager Gauntlet recommended deprecating all active Comets (Compound III markets) on Polygon and Unichain because the markets had seen limited adoption over the prior 180 days. The changes set collateral supply caps to zero, cut most borrow collateral factors by half and set supply rate slopes to zero, so interest paid by borrowers flows to reserves rather than to lenders. MaticX on Polygon lost its collateral value entirely, while liquidation factors and borrow rates were left alone. The four markets covered were the USDC and USDT Comets on Polygon and the USDC and WETH Comets on Unichain.
That vote passed with 661,370 COMP in favor and none against and was executed on July 20, 2026. Proposal 621 now collects the reserves that built up after that change. For how layer 2 bridges and challenge periods work, see our layer 2 explainer.
The fourth pullback in a month
Unichain is part of a pattern. Each of these proposals uses the same language about the final deprecation step and leaves a buffer for open loans.
- Proposal 615, Ronin: 55.45 WETH in total, bridged through Chainlink CCIP and executed October 15.
- Proposal 616, Scroll: 8,500 USDC out of 13,906.15 USDC, executed October 23.
- Proposal 617, Mantle: 205,000 USDe out of 234,356.61 USDe, executed October 26.
Every one of those votes passed with no votes against.
Stablecoin reserves Compound has moved or proposed moving from deprecated markets
thousand tokens
Token amounts, not US dollar values. Sources: Compound proposals on Tally
The bigger Polygon plan that vanished
The biggest item in the batch never reached a vote. Proposal 620 would have withdrawn 470,000 USDC.e and 65,000 USDT from Compound's Polygon markets, swapped the USDC.e into USDT on Uniswap V3 and sent 534,530 USDT to the Ethereum Timelock through LayerZero. It was published on-chain on October 29 and canceled about 40 minutes later the same day, according to Tally, which gives no reason.
Proposals 620 and 621 came from the same address. The Unichain proposal went ahead, and voting began on October 31.
The vote so far
As of November 2, 2026, Tally showed 522,240 COMP for, zero against and zero abstain from 10 addresses, against a quorum of 400,000. Voting opened on October 31. Tally shows the period was extended on November 1, and voting is set to end on November 3. All 10 voters so far backed the plan. If it passes, the proposal goes through the queue and execution steps of the Compound Governor before any funds move.
Proposal 621 votes as of November 2, 2026
thousand COMP
Source: Tally, Compound proposal 621
LC Insight analysis
This section is our reading of the facts above, not a statement of fact.
- We think these sweeps show Compound shrinking its multichain map to the places where people actually borrow. Each one is small, but together they mark a clear retreat from low-traffic layer 2 networks.
- The Polygon cancellation is the item to follow. At 534,530 USDT it is more than twice any other stablecoin sweep in the batch. A quick refile would be routine; a long gap would point to a problem with the swap or bridge route.
- For borrowers still on Unichain, the likely result is a slow squeeze: no supply yield for lenders and a shrinking buffer. Each sweep leaves them with less reason to stay.
What's next
- Final result of proposal 621 on November 3 and its execution date
- Whether a revised Polygon withdrawal is filed
- A follow-up proposal to sweep the remaining Unichain buffer once loans close
Disclaimer. This article is based on public information and the sources listed below as of the update time shown. It is for information only and is not investment, legal or tax advice. Figures may change as companies and authorities publish new data.
Sources
- Tally, Compound proposal 621: Withdraw reserves from cUSDCv3 and cWETHv3 on Unichain
- Tally, Compound proposal 620: Withdraw reserves from cUSDCv3 and cUSDTv3 on Polygon (canceled)
- Tally, Compound proposal 591: Deprecation of Polygon and Unichain Comets
- Tally, Compound proposal 617: Withdraw reserves from cUSDEv3 on Mantle
- Tally, Compound proposal 616: Withdraw reserves from cUSDCv3 on Scroll
- Tally, Compound proposal 615: Withdraw reserves from cWETHv3 on Ronin
