In a potential endeavor on Wednesday night, decentralized currency market Compound has been wrongly paying out millions of dollars in COMP tokens planned as liquidity mining rewards.
Twitter client napgener first flagged the issue, highlighting three Ethereum transactions showing clients getting a sum of $15 million in COMP tokens in return for borrowing and supplying small amounts of tokens, including USDC, DAI, and ETH.
Compound has a Liquidity Mining Program
The compound has a liquidity mining program that rewards depositors and borrowers, yet regularly at a pace of a solitary digit APY. The bungled payout aggregates demonstrate a blemish in the comptroller contract, which dispenses the COMP liquidity mining rewards, conceivably identified with a new redesign.
Onlookers have noticed that Compound’s comptroller contract isn’t overseen by a multi-sig constrained by Compound Labs, and any fix to the endeavor might require a governance vote among COMP holders.
Per Defi Llama, Compound is the world’s fifth-biggest decentralized finance protocol with an absolute worth locked (TVL) of $10.2 billion. Compound recognized the adventure on its authority Twitter handle and said no client reserves are in danger:
Compound Founder Stated 280K COMP Tokens are in Risk
In like manner, Compound founder Robert Leshner recognized the adventure in a tweet, saying that, to say the least just 280,000 COMP tokens are in danger of being incorrectly asserted.
Not long after Leshner’s tweet, at 1:38 UTC on Thursday, about 91,000 COMP tokens worth $27 million were asserted in a solitary exchange. The client seems to have provided $0 in crypto resources for the stage; they paid $154.77 in gas charges to take in their questionable take.
A similar wallet then, at that point, traded $140,000 in COMP for USDC through Uniswap. The cost of COMP has plunged on the news, tumbling from a 24-hour high of $334 to as low as $290.
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