$65 Million COMP At Risk Due to Protocol Error
Almost $150 million worth of COMP tokens are at risk due to a flawed protocol update launched last week.
On September 30, COMP tokens worth between $70 million and $85 million were mistakenly offered to users as a reward after a failed upgrade.
Although this bug was quickly discovered due to the delay in introducing new Compound controls, it will not be fixed until October 7th.
On October 3, Compound founder Robert Leshner tweeted that 202472.5 COMP (worth about $65 million) were at risk due to the drip function.
The drip function makes the tokens stored in the connection reservoir available to users, with the reservoir accumulating 0.5 COMP per block.
Leshner noted that so far most of the reserved COMPs are still in the reservoir.
SushiSwap developer Mudit Gupta stated that about 100 people were aware of the threat posed by the drip function, but since the bug was discovered on September 30, they were unable to act due to a delay in updating the protocol.
In a tweet, Leshner also revealed that approximately 117,000 COMP, worth $37.6 million, were returned to the record after the initial incident.
Yearn Finance developer Banteg estimated that one third of the funds that were at risk due to the drip function were claimed by users on October 3 at approximately 3:30 pm UTC. The total value of COMP tokens that could have suffered due to a protocol error is $147 million at the time of writing.
Despite initially discovering a bug that caused the COMP price to quickly drop 3% from $330 to $286 on September 30, the token quickly recovered and traded above $340 on October 2, according to CoinGecko.