Patch for the Bug-Plagued Compound Contract to be Executed on Saturday
Decentralized finance (DeFi) protocol Compound Finance (COMP) will see a patch for the bug in the vulnerable contract executed on Saturday. Meanwhile, some users have been returning the funds to the protocol, including USD 14.7m via crypto exchange ChangeNOW.
Proposal 064 has been marked as passed and 'succeeded' on October 7. The objective of this proposal is to “patch the bug introduced in Proposal 62 and pessimistically allow COMP reward withdrawals until the bad COMP accruals can be fixed.”
Among the community members who voted on the proposal, more than a million were for, and zero against. The COMP votes came from 27 addresses that include Founder of Compound Labs Robert Leshner, Andreessen Horowitz’s a16z, Gauntlet, and Pantera Capital, among others.
As reported, Compound Finance passed and executed Proposal 062 at the end of September, but soon found that due to a bug in a smart contract, users were able to claim millions in COMP rewards, with some USD 82m impacted at the time. They faced even more trouble just days later, when nearly USD 65m worth of COMP was dripped into the faulty contract before the fixes were able to be put in place. Leshner then said that some COMP 490,000 (currently 158.4m) were vulnerable.
Therefore, to fix the issue, two proposals have been put on the table – 063 and 064. The former one’s goal, per Compound Finance, was to temporarily disable the rewards. It was passed, and then cancelled on October 7. The team said it “prevents further COMP from being distributed until the correct logic is restored but causes issues for protocols that integrated with Compound and required the claim functionality.”
After the proposal 64 has been passed, said the team, they’re in a state where
“we'll be able to compute an exhaustive list of users with bad COMP accrual values. From there, we'll submit another proposal to fix the bad COMP accrual values and return everything to normal.”
Meanwhile, Leshner has been actively posting thanks to the individuals/groups who have returned the claimed COMP.
Among these, ChangeNOW returned COMP 45,505. Per a blog post, they received a transaction request for this amount of coins (then worth some USD 15m, and currently USD 14.7m), which had been flagged by their anti-money laundering (AML) system.
“After settling the matter with the user,” the exchange contacted Leshner to resolve the issue. “The user who approached us with the COMP exchange was supposed to get a 10% white-hat reward for their actions, but refused to take it, resulting in the assets being returned to Compound in full.“
According to the ChangeNow team,
“Bugs and leaks in the crypto industry are somewhat inevitable – the way we handle them is what’s important. Let’s not forget that there are real people behind every crypto transaction, and we want to believe that these people share similar values and agree to act on the basis of trust.“
At 8:05 UTC, COMP is trading at USD 323. It's up 3.6% in a day, and just as much in a week. In the past month, it dropped just over 22%.
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