Home Alt coins Compound Finance lost $ 22 million tokens due to contract error

Compound Finance lost $ 22 million tokens due to contract error

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Crypto News

DeFi Compound Finance’s protocol has suffered again due to an error in the Comptroller contract distributing liquidity mining rewards to users. $ 22 million was withdrawn from the protocol.

The Comptroller smart contract in the Compound Finance protocol is responsible for the distribution of COMP tokens in the liquidity mining process. After activating the update last week, there was a bug in the protocol allowing some users to receive excessive rewards. Then $ 80 million worth of tokens were withdrawn from the protocol.

According to a statement developer yEarn.Finance under the pseudonym banteg, yesterday attackers called the drip () function and transferred to Comptroller 202 472 COMP worth $ 68.8 million. Users managed to get tokens worth $ 21.5 million.

The owner of one address received 37,504 COMP ($ 12 million), and the other received 14,995 COMP ($ 4.9 million). The money was claimed under contracts with MakerDAO DSProxy and is now at two separate addresses. The owners of other addresses received 9,499, 1,699 and 2,999 COMP – the total value of the tokens withdrawn from the protocol reached approximately $ 22 million.

According to Compound founder Robert Leshner, MakerDAO developers are actively helping to find a solution to fix this error. How notes Leschner, in total, up to 490,000 COMP were at risk, of which 136,000 are still in the Comptroller, and 117,000 have already been returned to the community.

By words developer banteg, the possibility of replenishing the erroneous contract was “known for several days,” but the community’s plan “was to keep silent and hope no one knew about it.”

Compound contracts do not support the multi-signature scheme, which allows for faster activation of the update – changes can only be made after the seven-day approval process has ended. This security architecture now serves as a barrier to fixing erroneous code.

There is a debate in the community about what users should do with the money they receive. Leschner divided the panelists into two categories: “builders” of DeFi, who view protocols like Compound as a public good and return tokens to the community, and “profit maximizers,” who keep the money and see error as a developer’s problem.

The transfer of tokens to the contract is still ongoing. Users call a function to add money to the Comptroller contract from Compound Reservoir, potentially putting tokens at risk. Developer banteg said an initial estimate of the $ 68 million in danger of money could be wrong. More addresses have been found that may require tokens and empty the contract.

According to CoinMarketCap, the price of the COMP token has decreased by 7% over the past 24 hours to $ 316.

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