Compound, one of the branded challenge protocols on the Ethereum blockchain, is experiencing a bug that allows users to grab unusually large amounts of its native token. The issue was caused by the implementation of a proposal that modified the contract that awards tokens to users. Compound Labs founder Robert Leshner said user funds were safe and the bug would have to wait seven days to be fixed due to platform policies.
Compound Hit With Distribution Bug
Compound, one of the leading decentralized finance platforms built on top of Ethereum, is experiencing a bug that allows users to claim more comp, the native token of the protocol, than what they normally are able to. The bug was a product the application of governance proposal 062, which changed the relationship in which comp tokens are allocated.
According to Robert Leshner, founder of Compound Labs, this was the result of the code for the proposal being written by a community member, aided by other community members in the process. About this, Leshner stated:
This is the biggest opportunity and the biggest risk for a decentralized protocol – that an open development process allows a bug to go into production.
The impact of the bug is limited to the comp available in the comptroller’s smart contract, which is approximately 280,000 comp, worth $88 million at the time of writing.
Lack of a quick fix leads to frustration
Due to the governance processes and policies for applying governance changes to the platform, there is no quick and easy solution to this problem. Each governance proposal requires at least seven days to be passed, approved, and applied. However, Proposition 063, presented by some members of the community, disables the ability to claim a composition until the bug is resolved.
Leshner tried to warn community members that, if the majority of the claimed comp was not returned, he would report it to the IRS as income, revealing their identities in the process. This caused an almost universal outcry from Compound users, who wondered how decentralized the protocol really was.
Lesher ultimately backpedaled on this affirmation, declaring:
I’m trying to do anything I can to help the community get some of its COMP back, and this was a bone-headed tweet / approach. That’s on me.
Compound adapts its offer to encourage institutions to use its services. The company announced the launch of a service called Treasury in June, designed to offer stable yield opportunities to institutions in the space.
