Although the Compound developers proposed a fix to the log on September 30th, it won’t take effect until the seven-day code update timeout has expired.
The health of Compound’s DeFi currency market is worsening, with nearly $ 150 million in COMP now at risk due to a flawed upgrade of the protocol that went live last week.
On September 30th, a system glitch caused COMP to mistakenly spend between $ 70 million and $ 85 million as rewards to users after an update fixed the bug and the rewards distribution didn’t work.
While the bug was discovered quickly, Compound’s week-long delay in introducing new governance measures meant that the bug would not be fixed by October 7th.
On October 3, Compound founder Robert Leshner tweeted that 202,472.5 COMP (valued at about $ 65 million) were at risk after noticing the protocol’s drip functionality for the first time in about two months.
The drip feature brings the users the availability of tokens kept in Compound’s reservoir with 0.5 COMP accumulated by the reservoir per block. Leshner notes that “the majority of the COMP is user-specific” is kept in Reservoir.
“The total number of COMPs at risk is currently around 490,000, of which 136,000 COMPs remain in Comptrollers and 117,000 have been returned to the community to date.”
SushiSwap core developer Mudit Gupta criticized the use of time-outs in administration, claiming that around 100 people have been affected by the Dip threat since the bug was discovered on Aug.
Gupta also warned of the risks associated with upgradeable smart contracts, claiming that they are not suitable for “big DeFis”.
“I see upgradability as a bug rather than a feature,” added Gupta.
While Leshner announced that around 117,000 COMPs valued at $ 37.6 million were returned to the log after the initial crash, Yearn Finance developer Banteg reported estimate that a third of the money compromised by the drip function was requested from the user on October 3rd (UTC) at 10.30 a.m.
Banteg estimated the total value of COMP at $ 147 million as a protocol error.
However, although the COMP price quickly fell 3% from $ 330 to $ 286 after the crash was discovered on September 30th, it rebounded quickly and was trading at $ 317 at the time.
COMP price table | Source: Tradingview
COMP has lost 7% in value since hitting a local high of $ 347.5 on October 3rd.
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According to Cointelegraph