More than $140 million in tokens up for grabs – Defi

Compound, one of the main cryptocurrency lending protocols on Ethereum, is once again facing serious problems. According to Banteg, a Yearn developer, someone called a feature that made more money available to users. Now users can withdraw up to $140 million of the protocol's native currency, comp. Compound hopes that users do not claim these tokens and is rallying to fix the bug that caused this problem in the first place.

Connection remains vulnerable to exploitation

Compound, a decentralized finance protocol, made his worse current Situation where someone called a function that could take more funds. The feature, called Drip, sent more than 200,000 Comp (Compound's native token) to the Comptroller contract, the component hit by a bug last week, and allowed users to claim unusually high amounts of Comp.

After For Banteg, developer of another leading Defi protocol, Yearn, this was the “best kept secret in DeFi.” The drip feature moves funds between the token’s “cold wallet” contract – which manages the reservoir – to the comptroller to be distributed among users. The developer also explained that five different addresses could withdraw $45 million of these tokens, which would have a very negative impact on the price of the asset.

Leshner acknowledges problems

Robert Leshner, founder of Compound Labs, quickly identified the problem. He stated that this function had not been called for weeks and he expected the bug needs to be patched before new funds could be put at risk. Due to Compound's governance characteristics, the bug introduced last week is still awaiting approval of new proposals to apply a patch to correct it.

However, Leshner was optimistic about the future of the protocol, stating:

I'm optimistic about the patches making their way through the governance process, fixing the distribution, and the community members working to fix this bug.

The community is calling for changes to how these governance proposals are managed and approved. A user on Twitter suggested Introducing a new governance proposal to quickly fix bugs and treat them as emergency updates. This new event putting more tokens at risk apparently has affected comp price, which increased from $340 to $317 in the last 24 hours.

What do you think about Compound's problems and its governance model? Tell us in the comments section below.

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