Compound Finance Suffers Bug Leading To ~$50M Token Distribution
01 Octobre 2021 - 7:13AM
NEWSBTC
Compound Finance (COMP) has seemingly suffered a token distribution
bug after introducing and passing a recent governance vote that
addressed rewards distribution, Proposal 62. Shortly thereafter,
Compound reported in a tweet that there was unusual behavior
regarding COMP distribution following the vote, but that “no
supplied/borrowed funds are at risk.” The funds that are in
jeopardy due to the bug sit only in the Comptroller contract, which
means that there is a total cap of 280,000 COMP tokens that are at
risk. However, that’s still a hefty number, worth over $80M USD at
the time of publishing. One transaction was reportedly as high as
nearly $30M alone. Let’s Get Movin’ With governance often comes the
lack of immediate action. As Compound Finance CEO and Founder
Robert Leshner noted in a tweet discussing the events at hand,
“there are no admin controls or community tools to disable the COMP
distribution; any changes to the protocol require a 7-day
governance process.” The Compound team quickly rolled out the
initial governance process with Proposal 63 up for review, which
temporarily disables COMP distribution rewards while the team and
community address the fix for the protocol. Leshner adds that while
Proposal 63 is up for review, “a patch to restart the distribution
is in development.” While this gives the team time to address the
issue, Proposal 63 does note that all ~280,000 tokens will be at
risk. While the recent Compound bug showed immediate price impact,
buyers quickly came back to market and the COMP token has still
showed long-term resiliency. | Source: COMP-USD on TradingView.com
Related Reading | TA: Ethereum Consolidates, Why Bulls Could Aim
Fresh Rally Take 10% Leshner has since gone on Twitter asking
recipients of mistaken distributed COMP to return it, with the
below tweet: If you received a large, incorrect amount of COMP from
the Compound protocol error: Please return it to the Compound
Timelock (0x6d903f6003cca6255D85CcA4D3B5E5146dC33925). Keep 10% as
a white-hat. Otherwise, it's being reported as income to the IRS,
and most of you are doxxed. — Robert Leshner (@rleshner) October 1,
2021 He took a bit of heat for the tweet, and followed up by
stating that it was a “bone-headed tweet / approach” and that his
intentions lie in “trying to do anything I can do to help the
community get some of its COMP back.” Smart contract specialist
Kurt Barry noted just how costly small errors in code can impact
blockchain projects: Smart contracts are unforgiving of the tiniest
errors…COMP bug is a tragic case of ">" instead of ">=" (in
two code locations). Two characters, tens of millions of value
lost. — Kurt Barry (@Kurt_M_Barry) September 30, 2021 Truly a tough
set of circumstances for the Compound Finance community, however
many have shown approval of Leshner’s response. The move is not the
first mishap in the rapidly growing world of DeFi. Last month, the
Poly Network suffered a hack that cost over $600M USD. In a bit of
a bizarre set of circumstances, the Poly hacker returned most of
the stolen crypto back to the network. And in the last week,
cross-chain DeFi protocol pNetwork lost over $12M USD in tokenized
Bitcoin to attackers. Related Reading | Visa Is Building A Payment
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