Compound Finance announced the adoption of Proposition 064 entitled “Fixing COMP Accrual” on October 7th. The proposal states that this update will attempt to “correct the bug introduced in proposal 62 and allow the pessimistic disbursement of COMP bonuses until the poor COMP provisions can be corrected”.
The proposal, which was mainly written by the community members who proposed the original upgrade, received a COMP consensus vote of 1,037,107 yes-votes and 0 no-votes from 27 key addresses, including CEO Robert Leshner, Andreessen Horowitz’s A16z, Gauntlet and Pantera Capital. The proposal is now to be implemented on October 9th.
Users who have interacted with the six affected markets – cTUSD, cMKR, cSUSHI, cYFI, cAAVE and cSAI – will not be able to claim rewards from their deployed COMP tokens until the issue is fully resolved.
Proposition 064 has been approved and can be implemented in two days:
0 COMP ️
For the majority of users, the COMP distribution should return to normal after executing.
Certain users (who are getting Error 62) will only be able to request COMP after a future patch.
– Synthetic laboratory (@compoundfinance) October 7, 2021
On September 30th, Cointelegraph reported that a community-written Proposition 062 token distribution bug exposed a potentially devastating flaw in financial distribution where users of the protocol could falsely claim COMP tokens valued at $ 70 million.
If it is mined to the maximum, this error threatens to suck up all the COMP tokens contained in the comptroller contract, so that only the ones remaining in the reservoir contract remain.
Efforts to resolve the immediate crisis were fueled by Proposition 063, which took 7 days to produce due to the review, reconciliation, and timeout procedures in place in the Protocol. This lasted 2, 3 or 2 more days.
However, a seven day delay allowed a malicious company to take advantage of the trickle () function and transfer $ 68.8 million from the reservoir to Comptroller, increasing the pool of distributed COMP rewards.
The webmaster has revealed the reason for the next iteration of the proposal:
“Proposition 63 prevents further distribution of COMP until the correct logic is restored, but causes problems for protocols built into Compound and requires claims functionality.”
Proposal 064 is designed to address Compound’s accumulation problems, but lost funds can only be recovered on an individual basis – a decision that the protocol says is left to the ethical discretion of each user.