A bug was discovered in the DeFi Compound Finance protocol update released a few hours ago that resulted in users receiving extra $ 80 million in rewards.
In the update, a proposal was adopted that changes the distribution of COMP token rewards between liquidity providers and users. If earlier the distribution was in the 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 being able to receive excessive rewards. Users have already transferred extra $ 50 million worth of COMP tokens to their wallets.
“There was unusual activity in the COMP distribution after activating the update. User funds are safe, our team is investigating discrepancies in the distribution of tokens, ”says Compound Finance.
🚨 Unusual activity has been reported regarding the distribution of COMP following the execution of Proposal 062.
No supplied/borrowed funds are at risk — Compound Labs and members of the community are investigating discrepancies in the COMP distribution.
— Compound Labs (@compoundfinance) September 29, 2021
As Robert Leshner, founder of the protocol company Compound Labs, later said, 280,000 COMP tokens for a total of $ 80 million were at risk. The team has no way to prevent further distribution of tokens:
“No admin rights or other tools to disable COMP token distribution. Any changes to the protocol must go through a seven-day approval process to be activated. “
Compound Finance is one of the largest lending protocols out there. Now the project has blocked assets for $ 9.97 billion. In November last year, user positions for $ 89 million were liquidated in the protocol due to the failure of the Coinbase price oracle for the DAI token.
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