Compound Finance announced on Thursday that it had passed Proposal 064 entitled “Fix COMP Accrual Bug”. The proposal states that this update will attempt to “fix the bug introduced in Proposal 62 and pessimistically allow COMP reward withdrawals until the bad COMP accumulations can be resolved”.
The proposal, largely written by the same community members who proposed the original upgrade, received unanimous COMP votes of 1,037,107 for and 0 against from 27 key addresses including CEO Robert Leshner, Andreessen Horowitz’s A16z, Gauntlet and Pantera Capital. The proposal is now to be implemented on Saturday.
Users who have interacted with the six affected markets – cTUSD, cMKR, cSUSHI, cYFI, cAAVE and cSAI – will not be able to claim rewards from their authorized COMP tokens deployed until the issue is fully resolved.
Proposal 064 was accepted and can be implemented in two days:
0 COMP ⛔️
For the majority of users, the COMP distribution will return to normal after it runs.
Certain users (who hit the 62 bug) will only be able to claim COMP after a future patch.
– Compound Labs (@compoundfinance) October 7, 2021
Last Friday, Cointelegraph reported that a token distribution bug within community-authored Proposal 062 exposed a potentially devastating financial distribution bug that allowed users of the protocol to falsely claim COMP tokens worth $ 70 million .
If fully used, there is a risk of emptying all COMP tokens under the comptroller contract and leaving only those remaining in the reservoir contract.
Attempts to resolve the crisis were promptly initiated by Proposal 063, which took seven days to reach production due to the protocol’s governance process of review, reconciliation, and timeout. This took two, three or another two days.
However, the seven day delay allowed a malicious company to take advantage of the Drip () function and transfer $ 68.8 million from the reservoir to the comptroller, increasing the pool of improperly distributed COMP rewards.
The governance of the website shows the reason for another offer iteration:
“Proposal 63 prevents further COMPs from being distributed until the correct logic is restored, but causes problems with protocols built into Compound that require claims functionality.”
Proposal 064 is designed to solve Compound’s deferral problems, but the funds lost can only be reclaimed on an individual basis – a decision that protocol says is at the moral discretion of each user.