Compound, one of the largest decentralized lending protocols, has been forced to shut down its Compound Ether (cETH) market. And for good reason, a code error that slipped in during a protocol update. The issue should persist for at least a week given Compound’s governance system.
Compound shuts down cETH
Decentralized lending platform Compound, currently the third largest in the market by total value locked (TVL), suffered a code error following theimplementation of a governance proposal (Compound Oracle Upgrade v3)
aiming to update its price feeds via Uniswap V3.
Despite several audits carried out by 3 different people, the error, which went unnoticed during the checks, leads to theautomatic cancellation of transactions of anyone wishing to lend or borrow Compound Ether (cETH). The latter is obtained by depositing Ether (ETH) as collateral with the platform.
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.https://t.co/a2DFk7h0ET
—Compound Labs (@compoundfinance) August 30, 2022
The error, which also caused a temporary failure on the front-end part of the Compound site, will however have to remain for some time. Indeed, the latter should be corrected following proposal 119 aiming to return to the old price streams, but according to Compound’s governance policy, a week is necessary for the implementation of any new proposal.
According to OpenZeppelin, the error comes from the “getUnderlyingPrice” function which remains vacant and would therefore return a null responsethus preventing any such transaction.
Michael Lewellenan employee at OpenZeppelin, however, warned that liquidations were possible in particular in the event of a drop in the price of Ether between now and the implementation of the new proposal. However, even following the revealed bug, users can continue to deposit funds as collateral to secure their positionsaid the CEO of Compound.
According the discussion thread from the initial proposal to upgrade to UAV3, Compound still considering switching to the latter once the code problem is solved for the cETH.
The news had no impact on the COMP token, which is currently trading at $48.30a decrease of 0.6% over 24 hours.
To read – What is decentralized finance?
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky in nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
 market. And for good …){kind=link}
Comments
Post a Comment