The seven-day approval process for changes to the DeFi Compound protocol has ended with the community voted unanimously to activate a bug fix in the distribution of user rewards.
DeFi Protocol Developers Compound Finance announced Acceptance of the proposal 064 Fix COMP Accrual Bug. This update will fix a bug introduced in Proposition 62.
The proposal, put forward by the same community members who initiated the initial update, was unanimously accepted by the community with votes from users owning 1,037,107 COMP, including CEO Robert Leshner. The update is scheduled to activate on Saturday. Users who have interacted with the cTUSD, cMKR, cSUSHI, cYFI, cAAVE, and cSAI markets will not be able to receive COMP rewards until the issue is fully resolved.
The error in the smart contract cost the protocol about $ 100 million. It all started when a proposal was adopted in the end of September in another update that changes the distribution of COMP tokens between liquidity providers and users. If earlier the distribution was in a 50/50 proportion, now the calculation is carried out according to the ratio of the volume of loans and liquidity.
An error in the Comptroller contract resulted in some users receiving excessive rewards. Users transferred extra COMP tokens in the amount of $ 80 million to their wallets. A few days later, users withdrew another $ 22 million, as the developers could not quickly fix the error. This is because Compound contracts do not support the multidisc 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 served as a barrier to fixing erroneous code.
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