Compound: Earlier this month, the decentralized finance protocol (DeFi) Compound faced the distribution of nearly $90 million in coins by mistake. The case occurred due to an error in the process of updating your code, approved through community consensus. At the time, the developers and responsible for the system offered a reward of 10% of the amount received to users who willingly returned.
This strategy seems to have worked very well, as the information from Blockworks suggests. According to the site’s senior editor, Macauley Peterson, nearly $51 million in coins have already been returned to the Compound — equivalent to 163,000 units of the system’s native token, the COMP. In addition to the users’ good faith, the act also shows the trust investors have in the protocol.
On the other hand, the remainder of the nearly $40 million expropriated has not yet been returned and possibly will not be. If received by active users, they will be subject to the doxxing process, referring to the exposure of their personal data to authorities and the internet — as advised by developer Robert Leshner. Naturally, considering how much cryptocurrency investors value privacy, the measure was not very well received and could face retaliation if carried out.
.@compoundfinance is still recovering from a bug that leaked over $100M in rewards at the end of September.
— Blockworks (@Blockworks_) October 11, 2021
Despite the scare, the price of the protocol’s native currency, COMP, has remained firm since what happened. The asset is recovering from a slight drop of 7%, influenced by the strong appreciation of Bitcoin, being traded for around US$300 — or R$1,660, in direct conversion.