{"id":472868,"date":"2021-10-01T05:13:54","date_gmt":"2021-10-01T05:13:54","guid":{"rendered":"https:\/\/ktsl888.com\/?p=472868"},"modified":"2021-10-01T05:15:59","modified_gmt":"2021-10-01T05:15:59","slug":"compound-finance-suffers-bug","status":"publish","type":"post","link":"https:\/\/ktsl888.com\/news\/compound-finance-suffers-bug\/","title":{"rendered":"Compound Finance Suffers Bug Leading To ~$50M Token Distribution"},"content":{"rendered":"

Compound Finance (COMP) has seemingly suffered a token distribution bug after introducing and passing a recent governance vote that addressed rewards distribution, Proposal 62<\/a>. 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.”<\/p>\n

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.<\/p>\n

Let’s Get Movin’<\/h2>\n

With governance often comes the lack of immediate action. As Compound Finance CEO and Founder Robert Leshner noted in a tweet<\/a> 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.”<\/p>\n

The Compound team quickly rolled out the initial governance process with Proposal 63<\/a> up for review, which temporarily disables COMP distribution rewards while the team and community address the fix for the protocol.<\/p>\n

Leshner adds<\/a> 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.<\/p>\n

\"\"<\/p>\n

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<\/a><\/pre>\n
Related Reading | TA: Ethereum Consolidates, Why Bulls Could Aim Fresh Rally<\/a><\/strong><\/em><\/p>\n
Take 10%<\/h2>\n
Leshner has since gone on Twitter asking recipients of mistaken distributed COMP to return it, with the below tweet:<\/p>\n
\n
If you received a large, incorrect amount of COMP from the Compound protocol error:<\/p>\n
Please return it to the Compound Timelock (0x6d903f6003cca6255D85CcA4D3B5E5146dC33925). Keep 10% as a white-hat.<\/p>\n
Otherwise, it's being reported as income to the IRS, and most of you are doxxed.<\/p>\n
— Robert Leshner (@rleshner) October 1, 2021<\/a><\/p><\/blockquote>\n