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 conduct relating to COMP distribution following the vote, however that “no equipped/borrowed funds are in danger.”

The funds which might be in jeopardy because of the bug sit solely within the Comptroller contract, which implies that there’s a whole cap of 280,000 COMP tokens which might be in danger. Nonetheless, that’s nonetheless a hefty quantity, value over $80M USD on the time of publishing. One transaction was reportedly as excessive as almost $30M alone.

Let’s Get Movin’

With governance usually comes the dearth of speedy motion. As Compound Finance CEO and Founder Robert Leshner noted in a tweet discussing the occasions at hand, “there aren’t any admin controls or neighborhood instruments to disable the COMP distribution; any modifications to the protocol require a 7-day governance course of.”

The Compound workforce rapidly rolled out the preliminary governance course of with Proposal 63 up for evaluate, which briefly disables COMP distribution rewards whereas the workforce and neighborhood 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 growth.” Whereas this provides the workforce time to deal with the problem, Proposal 63 does be aware that each one ~280,000 tokens will probably be in danger.

Whereas the current Compound bug confirmed speedy worth affect, patrons rapidly got here again to market and  the COMP token has nonetheless confirmed long-term resiliency. | Supply: COMP-USD on TradingView.com

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Take 10%

Leshner has since gone on Twitter asking recipients of mistaken distributed COMP to return it, with the beneath tweet:

He took a bit of warmth for the tweet, and adopted up by stating that it was a “bone-headed tweet / strategy” and that his intentions lie in “attempting to do something I can do to assist the neighborhood get a few of its COMP again.”

Good contract specialist Kurt Barry famous simply how pricey small errors in code can affect blockchain tasks:

Really a troublesome set of circumstances for the Compound Finance neighborhood, nevertheless many have proven approval of Leshner’s response.

The transfer isn’t the primary mishap within the quickly rising world of DeFi. Final month, the Poly Community suffered a hack that value over $600M USD. In a little bit of a weird set of circumstances, the Poly hacker returned a lot 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.

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Featured picture from Pexels, Charts from TradingView.com