Compound unanimously adopts proposal to fix bug

Compound Finance announced the adoption of Proposition 064 on October 7, titled “Fix COMP Accrual Bug”. Proposal States that this updat...



Compound Finance announced the adoption of Proposition 064 on October 7, titled “Fix COMP Accrual Bug”. Proposal States that this update will attempt to “fix the bug introduced in Proposition 62 and pessimistically allow COMP reward withdrawals until the bad COMP totals can be fixed”.

The proposal, which was mostly written by the same community members who proposed the original upgrade, received unanimous votes of 1,037,107 for and 0 against from 27 key addresses, including CEO Robert Leshner, Andreessen Horowitz, Gauntlet and Pantera Capital A16z. The proposal is now expected to be executed on October 9.

Users who have interacted with all six affected marketplaces – cTUSD, cMKR, cSUSHI, cYFI, cAAVE, and cSAI – will not be able to claim rewards on their authorized staked COMP tokens until the issue is fully resolved.

September 30, Cointelegraph reported that a token distribution bug within the community-written proposal 062 revealed a potentially devastating financial distribution flaw in which protocol users were able to mistakenly claim a COMP token up to $ 70 million.

If exploited to the maximum, the bug threatened to drain all COMP tokens held in the controller’s contract, leaving only those that remained in the tank contract.

Attempts to rectify the crisis were immediately launched through Proposition 063 which took 7 days to reach production due to the protocol governance process of review, vote and time lock. This lasted respectively 2, 3 and 2 additional days.

However, the seven-day delay allowed a malicious entity to exploit the drip () feature, transferring $ 68.8 million from the tank to the controller, increasing the pool of misdistributed COMP rewards.

Site governance revealed the reason for a new proposal iteration:

“Proposition 63 prevents the distribution of other COMPs until the correct logic is restored, but causes problems for protocols built into Compound and requiring claim functionality.”

Proposition 064 is expected to resolve Compound’s accumulation issues, but lost funds can only be recovered on an individual basis – a decision under the protocol is at the moral discretion of each user.