Compound Finance (COMP) has apparently encountered a token distribution bug after launching and passing a recent ruling vote, which has tackled prize distribution, proposal.2. “Funds provided / borrowed are not at risk.”
Funds that are at risk due to bugs are only in the regulatory agreement, which means a total of 280,000 COMP tokens are at risk. However, it is still a huge number, more than $ 80M USD at the time of publication. One transaction was reportedly worth about 30 30 million.
With governance often comes a lack of immediate action. As compound finance CEO and founder Robert Lesnar Mentioned in a tweet Discussing events in hand, “There is no administrator control or community tool to disable COMP distribution; any change to the protocol requires an in-day governance process.”
The compound team quickly introduces the initial governance process for review with Proposition 63, which temporarily disables COMP distribution rewards while fixing team and community protocol solutions.
Lesnar added While Proposition 63 is up for review, “developing a patch to restart distribution.” While this gives the team time to resolve the issue, Proposition 63 notes that all ~ 200,000 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: Etherium combines, why bulls can notice freshly rallied
Lesnar has since taken to Twitter with the following tweets from the recipients of the incorrectly distributed COMP:
If you’re getting a large, incorrect amount of comp from compound protocol errors:
Please return it to the compound timeline (0x6d903f6003cca6255D85CcA4D3B5E5146dC33925). Keep 10% as a white hat.
Otherwise, it is being reported as IRS income and most of you are doxed.
– Robert Lesnar (Le Arlesner) October 1, 2021
He took some excitement for the tweet, saying it was a “bone-chilling tweet / method” and his intention was to “try to help the community get some comp to try to do what I can” behind the scenes.
Smart contract expert Kurt Barry noted how costly small bugs in the code can affect blockchain projects:
Smart contracts do not condone minor errors … COMP bugs are “>” instead of “>” tragic events (in two code locations). Two characters, billions of rupees lost.
– Kurt Barry (urtKurt_M_Barry) September 30, 2021
This is a really difficult situation for the compound finance community, but many have endorsed Lesnar’s response.
This move is not the first accident in the fast-growing world of DFI. Last month, the Poly Network was the victim of a hack worth more than 600 600 million. In somewhat bizarre situations, Polly Hacker returns most of the stolen crypto to the network. And last week, the cross-chain DFI protocol lost more than $ 12 million in tokenized bitcoin to pNetwork attackers.
Related Reading | Visa is building a payment channel network at Etherium
Featured image from Pexels, Charts from TradingView.com