On December 14, the majority of community heads at Compound Finance voted against the proposed compensation plan for users affected by Dai Liquidation (DAI) on November 26.
Vehicle dashboard numbers show 681,290 votes against and a total of 212,952 votes in favor. Additionally, COMP whales like Polychain Capital and Dharma have opposed the plan, based on their negative voices.
As Cointelegraph previously reported, some leveraged corporate growers underwent a mass liquidation due to a temporary disruption in the oracle data flow for Dai stablecoin (DAI) coming from Coinbase on November 26. With Dai at a premium of 30%, some traders saw their positions. Staff shortages, debt cancellation process begins.
Altogether, the merger on November 26 was approximately $ 89 million, with more than half of that amount attributable to price turmoil at Dai. In response, the project proposed a compensation plan of 8% of the liquidated amount for affected portfolios using the average COMP rate over 14 days.
If the project is accepted, 55234.95 companies. Within the project. Compensation for 121 users affected by liquidation. This amount represents about 2% of COMP’s negotiable 24-hour offer.
Since the biggest losers that day were cocktail whales, frequent accompanying farmers, the 8% compensation plan did little to offset the large losses. As the poster named “Dmitry” on the suggestion board indicates, the 30% deviation in the Dai price means the settlement occurred with an average penalty of 18%.
Several posters on the forum also raised questions about 61% of the compensation package that went to two of the company growers. Some community members claimed that the losses of the “small farmers”, according to the plan, were minimal.
Instead of increasing the compensation percentage, a portion of the community requested a maximum repayment of the two largest damaged portfolios. This step will continue to maintain compensation at the original width, while ensuring a fairer distribution.
Other reasons for voting against it include criticizing the project that the proposal does nothing to resolve the weaknesses that initially led to the correction. DeFi projects continue to plague opportunistic firms due to mistakes in smart contracts and centralized price orders.