Compound, one of the main cryptocurrency lending protocols on Ethereum, is facing serious problems again. According to banteg, a Yearn developer, someone called a function that moved more funds to be available for users to claim. Now, users can claim up to $140 million of the protocol’s native currency, COMP. Compound is hoping users won’t claim these tokens and is rallying to patch the bug that caused this problem in the first place.
Compound Remains Vulnerable to Exploit
Compound aggravated its current situation when someone called the drip function, which sent more than 200,000 COMP (approx. $140 million) to the Comptroller contract — the component affected by a bug last week that allowed users to claim unusually high amounts of COMP. According to banteg, a developer from another leading DeFi protocol Yearn, this was the “best-kept secret in DeFi.” The drip function moves funds between the token’s “cold wallet” contract (which manages the reservoir) to the Comptroller for distribution among users. He also stated that five different addresses could drain $45 million of these tokens, which would have a very detrimental effect on the asset’s price.
Leshner Acknowledges Issues
Robert Leshner, founder of Compound Labs, was quick to acknowledge the issue. He stated that this function had not been called for weeks, and he expected the bug to be patched before new funds could be put at risk. Due to Compound’s governance characteristics, the bug introduced last week is still waiting for new proposals to be approved in order to apply a patch. However, Leshner was optimistic, stating: “I’m optimistic about the patches making their way through the governance process, which fix the distribution, and the community members that are working to manage this bug.” The community is calling for changes to how governance proposals are managed, with one user proposing emergency updates for critical bugs. This new event has apparently affected COMP’s price, which dropped from $340 to $317 in the last 24 hours.