In Brief:
- Compound Finance introduced a new upgrade but it contains a bug.
- The bug allows some users to claim unusual amount of COMP tokens
- Compound Finance can face up to $84 million of loss.
Compound Finance introduced a new upgrade to its protocol that contained a bug. The bug leaves some users with an unusual amount of COMP as rewards to be claimed.
“Unusual activity has been reported regarding the distribution of COMP following the execution of Proposal 062,” the Compound Labs team behind the Compound protocol, tweeted.
“No supplied/borrowed funds are at risk—Compound Labs and members of the community are investigating discrepancies in the COMP distribution,” it added. It also said that no user’s funds are at risk.
The proposal 062 by Tyler Loewen, crypto maximalist, completes RFP-15. The aim of the proposal is to split the COMP distribution to liquidity suppliers and borrowers based on governance set ratios. The new upgrade, also shown to fix minor bugs.
With the proposal execution, the new bug was infused in the upgrade as part of the Comptroller contract. The Comptroller contract address contains a small number of COMP tokens.
Robert Lesher, the founder of Compounds Labs, stated that at worst, the impact is bounded at 280 K COMP tokens. The bug allowed users to claim worth around $50 million in COMP tokens.
Lesher’s also noted that “there are no admin controls or community tools to disable the COMP distribution; any changes to the protocol requires a 7-day governance process to make their way into production. Labs, and members of the community, are evaluating potential steps to patch the COMP distribution.”
Moreover, Compounds Labs and members of the community are assessing some potential steps to fix the COMP distribution. Soon after Lesher’s tweet at 1:38 UTC on 30 Sept. 91,000 COMP tokens worth $27 million were claimed in a single transaction. The users appear to have supplied $0 in crypto to the platform, they paid $154.62 in transaction fee. The same wallet then swapped $140,000 COMP in USDC via Uniswap.
