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Compound Finance Suffers Bug Leading To ~$50M Token Distribution

Compound Finance (COMP) has seemingly suffered a token distribution bug after introducing and passing a current governance vote that addressed rewards distribution, Proposal 62. Shortly thereafter, Compound reported in a tweet that there was uncommon habits concerning COMP distribution following the vote, however that “no supplied/borrowed funds are at risk.”

The funds that are in jeopardy due to the bug sit solely within the Comptroller contract, which signifies that there is a complete cap of 280,000 COMP tokens that are in danger. However, that’s nonetheless a hefty quantity, price over $80M USD on the time of publishing. One transaction was reportedly as excessive as practically $30M alone.

Let’s Get Movin’

With governance usually comes the shortage of speedy motion. As Compound Finance CEO and Founder Robert Leshner noted in a tweet discussing the occasions 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 staff rapidly rolled out the preliminary governance course of with Proposal 63 up for evaluate, which briefly disables COMP distribution rewards whereas the staff and group deal with the repair for the protocol.

Leshner adds that whereas Proposal 63 is up for evaluate, “a patch to restart the distribution is in development.” While this offers the staff time to deal with the problem, Proposal 63 does word that every one ~280,000 tokens will likely be in danger.

While the current Compound bug confirmed speedy worth impression, consumers rapidly got here again to market and  the COMP token has nonetheless confirmed 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 under tweet:

He took a bit of warmth for the tweet, and adopted 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 famous simply how pricey small errors in code can impression blockchain initiatives:

Truly a tricky set of circumstances for the Compound Finance group, nevertheless many have proven approval of Leshner’s response.

The transfer is not the primary mishap within the quickly rising world of DeFi. Last month, the Poly Network suffered a hack that price over $600M USD. In a little bit of a weird set of circumstances, the Poly hacker returned many of the stolen crypto again to the community. And within the final week, cross-chain DeFi protocol pNetwork misplaced over $12M USD in tokenized Bitcoin to attackers.

Related Reading | Visa Is Building A Payment Channel Network On Ethereum

Featured picture from Pexels, Charts from TradingView.com

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