Compounding problems: $65m more COMP at risk as devs wait for time-locked bug fix

Major DeFi money market Compound’s woes are worsening, with nearly $150 million worth of COMP now at risk due to a buggy upgrade to the protocol that went live last week.

On Sept. 30, Cointelegraph reported that a bug had resulted in between $70 million and $85 million worth of COMP tokens being mistakenly offered to users as rewards after an update intended to fix bugs and “split COMP rewards distribution” went awry.

Despite the reward distribution error being identified quickly, Compound’s week-long delay on enacting new governance measures meant that the error will not be fixed until Oct. 7.

On Oct. 3, Compound founder Robert Leshner tweeted that 202,472.5 COMP (worth approximately $65 million) had been placed at risk after the protocol’s drip function was called for the first time in roughly two months.

The drip function makes tokens held in Compound's Reservoir available to users, with 0.5 COMP being accumulated by the Reservoir per block. Leshner noted that “the majority of COMP reserved for users” is held in the Reservoir.

SushiSwap developer Mudit Gupta took to social media to criticize the use of time-locks on governance, asserting that roughly 100 people were aware of that the threat posed by the drip function since the Sept. 30 bug was discovered but they were unable to act due to the time-delay on updating the protocol.

Gupta also warned of the risks associated with upgradable smart contracts, asserting they are inappropriate for “large [DeFi] primitives.”

Source:cointelegraph.com