Compound Pauses New Deposits for Seven Liquid-Staking Token Listings

Compound has implemented a change to its governance system, setting the supply cap to zero for four liquid-staking and liquid-restaking tokens across seven collateral listings on Ethereum and three Layer 2 networks. This decision follows a recommendation from risk manager Gauntlet, citing low demand and elevated risks associated with these assets.

The affected tokens are ezETH, pufETH, rETH, and tETH, which currently hold under $500,000 of collateral in each relevant comet. The zero supply cap prevents new deposits but does not trigger forced liquidations, alter collateral factors, or place limits on withdrawals or repayments. Existing positions remain fully functional.

Gauntlet's recommendation applies a uniform rule: any collateral listing with current supply below $500,000 and a positive supply cap receives a recommended cap of zero. The threshold is described as a coarse floor below which a listing is judged not to cover its associated risk and operational costs.