Bug on DeFi platform, Compound, produces $162 million worth of Crypto

 Bug on DeFi platform, Compound, produces $162 million worth of Crypto

Bug on DeFi platform, Compound, produces $162 million worth of Crypto.

Spread the love

Compound Labs’ founder Robert Leshner, the creator of the company, says more than $162 million is up for grabs after an upgrade went horribly wrong.

Approximately 5% has been taken off Compound’s native token price value.

The Compound chief had previously tweeted that a limit was in place for the number of comp tokens that could be accidentally distributed, saying: “The impact is limited, at worst, to 280,000 comp tokens, or $92.6 million.”.

In a disclosure released on Sunday, Leshner revealed that the cash pool that had been depleted once had been replenished – or roughly $66.9 million using the current price of the token.

The biggest-ever fund loss in a smart contract incident has been acclaimed by some, including a core developer for the DeFi platform Yearn, but investors aren’t so concerned.

A core developer at SushiSwap, a decentralized cryptocurrency exchange, Mudit Gupta, believes that the crypto market is ignoring the biggest fund loss ever. It’s an exciting time for DeFi, but we are still in the process of learning.

DeFi protocols such as Compound are designed to recreate traditional financial systems such as banks and exchanges using blockchains enriched with self-executing smart contracts.

As of Wednesday, Compound released an update that should have been pretty standard. Once users began receiving millions in comp tokens after implementation, however, it became obvious something went seriously wrong.

Complimentary tokens were claimed for $30 million in one transaction, for example.

Thankfully, there was one saving grace in the entire saga: the pool of cash that was open to exploitation – the Comptroller contract – was limited in tokens. Gupta says that the pool has been receiving a fresh influx of cash, and 0.5 comp tokens appear roughly every 15 seconds.

Olumide Adesina

Olumide Adesina a France-born Nigerian, a Certified Investment Trader, with more than a decade of working expertise in Investment and Trading. He is also a reputable author and writer for CoinDesk and FxEmpire.

Related post