The problems with money market communications are exacerbated in the large decentralized financial market (DeFi), where nearly $150 million in COMP is now at risk due to a flawed protocol update that went into effect last week.
Cointelegraph reported Thursday that a bug resulted in users mistakenly offering $70 to $85 million worth of COMP tokens as a reward after an update that fixed a bug and a “distribution of COMP sharing reward” error.
While the assignment error was quickly identified, apartment complexes’ weekly delays in adopting new controls mean the error won’t be resolved until Thursday.
Pool founder Robert Lechner tweeted Sunday that 202,472.5 companies (worth about $65 million) were hacked after the protocol’s drip feature was first called about two months ago.
The drip function makes the tokens in the delivery tank available to users, the tank accumulating 0.5 COMP per block. Lechner noted that “most of the COMP reserved for users” is in the tank.
SushiSwap developer Mudit Gupta has taken to social media to criticize the use of time constraints for censorship, saying that about 100 people have known about the drip threat since the bug was discovered Thursday but were unable to act due to the time lag. Protocol update. …
Gupta also warned of the risks associated with upgradable smart contracts, arguing that they are not suitable for “high priority [DeFi].”
“I think the update is more of a bug than a feature,” he added.
While Leschner’s tweet revealed that an estimated $117.6 million from COMP, worth $37.6 million, was returned within minutes of the first incident, Yearn.finance developer Banteg estimated that a third of the money threatened with the drip feature had already been claimed by users Around 15:30 UTC on Sunday.
Banteg calculated that the total value of the COMP token, which is now affected by the protocol bug, is $147 million.
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According to CoinGecko, despite initially identifying a flaw that caused COMP’s price to drop by 3% from $330 to $286 on Thursday, the coin quickly recovered and traded above $340 on Saturday.
COMP has lost 7% in value since a local high of $347.5 on Sunday, last changing hands at $322 at the time of writing.