News02 October 2021

Compound DeFi Staking Protocol Bug Accidentally Pays $90.1 Million To Users

Compound DeFi Staking Protocol Bug Accidentally Pays $90.1 Million To Users

Summary

  • Compound protocol failure in the last update attracts a monetary loss
  • Two COMP users admit to receiving transfers without justification
  • COMP CEO urges users to return the erroneous funds for a 10% cut

Compound, a DeFi-based algorithm protocol, is counting losses after the bug sent out tokens worth $90.1 million to users. The issue occurred after the protocol updated the platform.

On 1 October, the Compound CEO sent out a statement pleading with the recipients of erroneous funds to refund. The platform’s work manager, Leshner, admitted that the funds were sent by error and asked the recipients to make refunds. As an incentive, the platform allowed the recipients to keep 10% of the tokens if they agreed to return 90% of what they received.

Minutes after the CEO’s statement, a user confirmed having received $29 million in crypto from COMP, while another user admitted receiving $20 million worth of COMP tokens. Compound is the fifth largest decentralized finance platform with a net worth of more than $9.60 billion.

Kibet Elikana
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