“This makes me optimistic that people will refund most of the COMP tokens, as well, but you can never be sure,” he said.
How It Happened
Decentralized Finances (DeFi) protocols are designed to recreate traditional financial systems such as exchanges and banks by relying on blockchains.
On Wednesday, Compound had set up a supposedly “normal” upgrade which turned out awfully for the company.
“The new Comptroller contract contains a bug, causing some users to receive far too much COMP,” explained Leshner in a tweet.
“There are no admin controls or community tools to disable the COMP distribution; any changes to the protocol require a 7-day governance process to make their way into production,” he added, indicating that no fix could take effect for a week.
Gupta, a core developer at decentralized crypto exchange SushiSwap, said in a tweet that the entire episode could be blamed on a “one-letter bug” in the code.