Saturday, June 10, 2023

Compound Faces Additional Difficulties


After the bug that transferred $90 million to its users. Compound, one of the major cryptocurrency systems, faces a potentially devastating after-effect.

Last week, Compound, a popular cryptocurrency platform, released what should have been a regular code change. However, the flaw accidentally deposits $90 million tokens into certain users’ accounts, and recovering these tokens won’t be straightforward.

Yearn developer Banteg said a function triggers that made up to $140 million in comp. Comp is the protocol’s native currency, available to users.

While the firm works to solve the problem that causes these issues, they keep hoping that users won’t claim their tokens. However, Compound is still exploitable as of this writing.

The issue happened when the function, drip, sent more than 200,000 comps to the Comptroller contract. This controller affects by a bug last week which allowed them to claim a significant number of comps.

Cold Wallet

“Cold wallet” cash from the reservoir is dripped through Banteg to the Comptroller, where it is disbursed to users. One of the five addresses may drain $45 million in tokens, negating the asset’s value.

On the other hand, Robert Leshner, founder of compound labs, didn’t deny the issue. He stated that he expected the bug to patch before the new funds may be risky. However, according to the compound’s governance structure, a patch to fix the flaw they introduced last week is still pending approval.

However, Leshner remains optimistic about the future of the protocols. He is sure that the patches will approve by the governance process. As well as potentially fixing the distribution and the community members managing this bug.

The community, on the other hand, calls for changes in how governance proposals manage and approves. A new type of governance that treats bugs as urgent updates suggests in a recent Twitter exchange.

With the comp’s pricing dropping from $340 to $317 in under 24 hours, the said issue appears to have paralleled a considerable change in the comp’s price.

Ivan Cruz
Ivan Cruz
Ivan Cruz is a writer for Cryptoconstellation. He has his Masters in Applied Research in Economics & Business. Ivan has been trading crypto for the past 7 years himself and feels it is his duty to bring you all the latest news.

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