In a Twitter post by Compound Labs: “An hour ago, Proposal 117 was executed, which updated the price feed that Compound v2 uses. This price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.”
DeFi lending protocol, Compound Finance, is dealing with a bug caused by their recent upgrade. This has led to the reversal of transactions for Ethereum suppliers and borrowers, rendering the platform’s $830 million cETH market unusable until the bug is removed.
Compound made this announcement immediately after the upgrade was executed and assured its users that their funds were not at risk.
The crypto lending platform, in a Twitter post, stated;
“An hour ago, Proposal 117 was executed, which updated the price feed that Compound v2 uses. This price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.”
They continued further, stating;
“Effectively, the cETH market is temporarily frozen. A new proposal, 119, has been created to revert to the previous price feed; this will take seven days to go into effect. Funds are not immediately at risk, but this is a developing situation.”
The bug introduced in Proposal 117 was due to a price calculation that assumed that all cTokens functioned as CErc20, leading to the reverted transactions. Regardless, Compound stated that users with outstanding debts can still deposit Ethereum tokens to avoid liquidation when the market finally opens.
The cETH market is temporarily unusable, but a new proposal, 119, has been created to cause the reversion of the price to the previous one. This execution will take seven days before its full implementation.
This is because Compound uses a decentralized governance process that allows a change to the protocol's functionality only after passing a proposal that COMP token holders have to vote on.
It is worth knowing that this is not the first time Compound Finance has been unable to fix a live bug due to its slow-paced governance. In September last year, about $80 million in excess rewards were mistakenly distributed to depositors, and they released an additional $68.8 million while the fix was still pending.
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