✅ All code is open source
✅ Critical logic requires tokenholder vote to modify
✅ Never critically hacked or exploited
❌ Whales dominate voting
Whale tokenholders could, potentially, collude to modify the core logic to drain funds. However, any changes would be held by a timelock contract and would be displayed on this page.
Compound has no admin key, and all governance powers have been transitioned to token holders. Token holders to have the ability, via on-chain governance votes, to affect the core logic of the smart contract.
There is a very strong likelihood that the core team, venture-backed investors, and whales still dominate the Compound voting system (as they dominate all token voting systems). Distribution of the COMP token is displayed on the Compound website, however trust is required as anonymous holdings are possible and probable. These factors create a trust requirement when it comes to these team members & investors acting in the best interests of users.
Compound does have a vote delegation system which increases the ability to create pseudo-whales out of otherwise inconsequential voters. This, in addition to an easy-to-view timelock page which displays governance actions before they are actually implemented, gave Compound the edge over Maker.