DeFi protocol distributed 280 thousand COMP tokens due to an error in the smart contract, which is responsible for the distribution of funds to borrowers and liquidity providers
Compound’s DeFi Protocol paid borrowers and liquidity providers free 280,000 COMP tokens worth over $ 80 million, reported on Twitter, Compound Labs founder Robert Leschner. Compound is a decentralized platform that issues loans in COMP tokens and distributes them as a reward.
According to Leschner, the incident occurred due to an error while updating the smart contract, which is responsible for the distribution of funds. The error caused the contract to increase the amount of funds that were paid to users. One of the users brought out COMP tokens for $ 27 million
The developers cannot fix the erroneous distribution of tokens, since they do not have such rights, and the project is in the hands of its community. To return tokens, you need to vote among their holders. In case of a positive decision, this process will take at least a week, Leschner said.
Due to an error in a smart contract and a free distribution, the price of the COMP token decreased by 10% per day, to $ 296, and its capitalization fell to $ 1.7 billion, according to CoinGecko.
You will find more news about cryptocurrencies in our telegram channel RBC-Crypto.