# Using Compound v3

### Market Selection

You will find a button that allows you to switch between v3 Compound markets. *O*n Compound v3, the market determines which asset can be borrowed. 

<figure><img src="/files/w4OpZg4KArBd2xy9AnER" alt=""><figcaption><p><em>For example in the USDC market you supply other assets and borrow USDC.</em></p></figcaption></figure>

### Lender or Borrower

Compound v3 markets will only allow you to lend or borrow, but you will not be able to to both.

#### Interest earning are only available to the Base Asset

Compound v3 markets do not generate interest on collateral, instead only supplying the base asset generates interest in-kind. For example USDC can be supplied and earns interest in the USDC Market, ETH can be supplied in the ETH Market and earns interest in ETH, etc.

<figure><img src="/files/Ypg0U4tnWOyysXqrdSe6" alt=""><figcaption><p>You can supply USDC to earn interest, remember other assets do not earn interest.</p></figcaption></figure>

Remember you can always create another DSA Account associated to your same address, so you can use the additional Compound account and have one dedicated as borrowing and one as lender.

<figure><img src="/files/9aqgnH9xTCh0veEaTI3n" alt=""><figcaption><p>You can only payback and borrow if you already have a debt in the base asset</p></figcaption></figure>

### Strategies for Compound v3

Supercharge your Compound v3 account with access to Instadapp's popular strategies

<figure><img src="/files/GGV3Co13Cm4VRp1YV1wy" alt=""><figcaption></figcaption></figure>

On Compound v3 the debt is always in the base asset. Here are descriptions of the flashloan powered strategies:&#x20;

**Leverage:** This will borrow the base asset and resupply with the selected collateral, creating a leverage.&#x20;

**Save/Unwind:**  This will sell the collateral to repay the debt owed in the base asset. Use this to close your account in one transaction.

**Collateral Swap:** This strategy swaps the underlying collateral in the position for another asset. This allows you to swap assets within your Compound position.

### Other notes on Compound v3:

* Remember collateral assets supplied do not gain interest at any time. If you are not borrowing against your collateral assets they are simply sitting in the Compound protocol.
* When you are liquidated on Compound v3 your entire position will be returned to you in USDC, you will get the earn rate for USDC but all supplied collateral will be sold to USDC.
* Instadapp team plans to continue to innovate on Compound v3!
* Interest rates on Compound v3 are more governance driven so it may be good to stay connected on social. Instadapp Discord has a DeFi feed which pushes annoucements from Compound.


---

# Agent Instructions: Querying This Documentation

If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question.

Perform an HTTP GET request on the current page URL with the `ask` query parameter:

```
GET https://guides.instadapp.io/protocols/compound/using-compound-v3.md?ask=<question>
```

The question should be specific, self-contained, and written in natural language.
The response will contain a direct answer to the question and relevant excerpts and sources from the documentation.

Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.