Decentralized finance (DeFi) continues to evolve, bringing more accessible and efficient ways for users to earn yield on their digital assets. One of the most anticipated developments in the space is the launch of Compound v3 on Arbitrum, now available through a streamlined on-chain earning product featuring USDC. This integration simplifies participation in DeFi lending markets, allowing users to earn competitive annualized returns without complex interactions.
Whether you're new to DeFi or an experienced yield seeker, this guide breaks down everything you need to know about Compound v3 on Arbitrum, how it works, what rewards are available, and how you can start earning with USDC today.
What Is Compound v3?
Compound v3 is an upgraded version of the popular decentralized lending protocol, optimized for EVM-compatible blockchains like Arbitrum. It enables users to lend or borrow digital assets in a trustless, transparent manner governed by smart contracts.
Unlike traditional finance, where intermediaries control lending and interest rates, Compound operates autonomously. Interest rates adjust dynamically based on supply and demand for each asset within the protocol.
With Compound v3, improvements include enhanced capital efficiency, reduced gas costs, and tighter risk controls—making it ideal for layer-2 environments like Arbitrum, where fast and low-cost transactions are key.
👉 Start earning yield on USDC with ease and security.
How to Earn Yield with USDC on Arbitrum
The newly launched on-chain earn product allows users to deposit USDC directly into Compound v3 via a user-friendly interface—no need to interact with raw smart contracts or manage complex wallet settings.
Here’s how it works:
- Deposit USDC into the integrated product.
- Your funds are supplied to the Compound v3 protocol as liquidity.
- You begin earning lending interest immediately.
- Rewards in COMP (governance token) and limited-time ARB incentives are distributed automatically.
This seamless experience brings the power of DeFi to mainstream users while maintaining full on-chain transparency and security.
Key Benefits of This On-Chain Earn Product
✅ No Subscription Cap
There is no upper limit on how much USDC you can deposit. Whether you're contributing $100 or $100,000, your funds are accepted equally, ensuring fair access for all users.
✅ Simplified User Experience
Gone are the days of navigating multiple decentralized apps and paying high gas fees. The product abstracts away technical complexity, offering a smooth, intuitive interface that mimics centralized finance—but with decentralized benefits.
✅ Real-Time Annualized Yield
You’ll see clear projections of your potential annual percentage yield (APY) based on current market conditions. While yields fluctuate due to supply-demand dynamics, historical data shows consistent returns for stablecoin lenders.
✅ Full On-Chain Transparency
All deposits and rewards are recorded on the Arbitrum blockchain. You retain control of your assets at all times, with earnings generated directly through protocol-level mechanisms.
Reward Structure: Maximize Your Earnings
There are three layers of return available when participating in this product:
1. Lending Interest
Earn interest simply by supplying USDC to the market. This base yield is accrued continuously and paid out when you redeem your principal.
2. COMP Token Rewards
As a liquidity provider, you also receive COMP tokens, the native governance token of the Compound protocol. These are distributed every 7 days directly to your account, giving you ongoing exposure to the protocol's growth and decision-making power.
3. Limited-Time ARB Incentives (Until July 15)
As part of a special campaign, participants will share in a 100,000 ARB rewards pool in collaboration with OKX Web3 Wallet. These bonus tokens are distributed daily, providing an extra incentive boost during the initial phase.
💡 Note: The ARB reward program ends on July 15. Early participation maximizes your share of the incentive pool.
How to Get Started: Step-by-Step Guide
Accessing this earn opportunity is simple across both web and mobile platforms.
On Web:
- Go to the top navigation bar
- Click Finance > Earn > On-Chain Earn
- Search for USDC
- Select Compound v3 (Arbitrum)
- Begin depositing and start earning
In the App:
- Tap Finance
- Navigate to Earn > On-Chain Earn
- Search for USDC
- Choose Compound v3 (Arbitrum)
- Start your deposit
Once confirmed, your USDC begins generating yield immediately. Track your earnings in real time under your portfolio dashboard.
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Frequently Asked Questions (FAQ)
Q: When does interest start accruing after I deposit USDC?
A: Interest begins accruing immediately upon successful deposit confirmation on the Arbitrum network.
Q: How often are COMP rewards distributed?
A: COMP token rewards are disbursed every 7 days directly to your funding account.
Q: Are there any minimum deposit requirements?
A: There is no official minimum set by the protocol, but practical limits may apply due to gas fees and redemption thresholds. Check the product page for current details.
Q: Is my capital locked? Can I withdraw anytime?
A: Withdrawals follow the underlying protocol’s rules. While there’s no fixed lock-up period, redemption may require a short settlement time depending on network conditions.
Q: Who covers potential losses from smart contract risks?
A: The platform does not assume liability for losses caused by exploits, bugs, or project failures. Users are encouraged to assess risk tolerance before participating.
Q: Are fees charged for using this service?
A: Yes, a service fee is applied—details are transparently listed on the product page before you confirm your deposit.
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These terms reflect common search queries from users exploring passive income opportunities in DeFi, particularly around stablecoin utilization and layer-2 scaling solutions.
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Final Thoughts
The launch of Compound v3 on Arbitrum marks a significant step forward in making DeFi more accessible, efficient, and rewarding. By combining robust protocol design with a simplified user interface, this on-chain earn product lowers the barrier to entry while preserving the core principles of decentralization.
With attractive yields, dual-token incentives (COMP + ARB), and no subscription caps, now is an excellent time to put your USDC to work. As layer-2 adoption grows throughout 2025, early movers stand to benefit the most—from both financial returns and deeper engagement with next-generation financial infrastructure.
Remember to review all terms, understand the risks involved in DeFi protocols, and always use trusted platforms to interact with smart contracts.
Start earning today—and take full advantage of what decentralized finance has to offer.