Decentralized crypto financing platform Compound has lot about $162 million of it’s own cryptocurrency after an upgrade went wrong, according to Robert Leshner, founder of Compound Labs.
On Wednesday, Compound rolled out what should have been a standard upgrade. Soon after implementation, however, it was clear that something had gone wrong, once users started to receive millions of dollars in comp tokens.
The price of Compound’s native token, called comp, is down about 4.8%.
At first, the Compound chief tweeted Friday that there was a cap to how many comp tokens could be accidentally distributed, noting that “the impact is bounded, at worst, 280,000 comp tokens,” or about $92.6 million.
But on Sunday morning, Leshner revealed that the pool of cash that had already been emptied once had been replenished – exposing another 202,472.5 comp tokens to exploit, or roughly $66.9 million at its current price.
Some, including a core developer at DeFi platform Yearn, are billing this as the biggest-ever fund loss in a smart contract incident.
“The crypto market shrugged off the largest-ever fund loss as if it was nothing,” said Mudit Gupta, a core developer at decentralized crypto exchange SushiSwap. “The future for DeFi is bright but we’re in uncharted territory, and there’s a lot to be learned still.”
For example, $30 million worth of comp tokens were claimed in one transaction.
The saving grace of the entire debacle, however, was the fact that the pool of cash that was open to exploit – something called the Comptroller contract – had a finite amount of tokens. The problem is that this leaky pool got a fresh influx of cash, and 0.5 comp tokens are being added roughly every 15 seconds, according to Gupta.
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