Hot Potato: Decentralized finance enthusiasts love touting the cost, speed, privacy and security advantages over the traditional banking system, but it's still new to the concept in its early days. The pool, the world's fifth largest decentralized financial protocol with a total value of $10.3 billion, failed to sign a smart contract resulting in a total capital loss of $162 million.
Last week, a decentralized financial (DeFi) platform called Compound Labs mistakenly donated less than $162 million to its COMP token. As expected, this made many account holders happy, but the CEO asked them to return their money voluntarily. Errors in the console nodes update - which is used for clients of COMP tokens - resulted in the distribution of US$92.6 million to users. At random, this number represents the hard limit for the number of COMP tokens that can be randomly distributed (280,000 tokens).
Photo: CEO Robert Lechner
He completed the pool complex to the 202,472.5 mark COMP on Sunday morning, using $66.9 million in reserved funds. Initially, Lechner required people who had a lot of currency to keep 10 percent and return the rest, or else their meager income would be reported to the IRS as income to force them to pay taxes. do it. He has since apologized for the threatening tone of his request, but has tarnished the public image of what appears to be a decentralized financial platform.
This error will be logged as the largest date. Loss of funds that occurred as a result of a smart contract accident. Most investors don't seem to be concerned and at least 162,505 corporate tokens worth $51.1 million have been returned as of this writing. “This is not a good view of decentralized financial projects,” Andrew Park, a financial policy analyst and crypto critic, told Bloomberg. "There are reasons to criticize the current banking system, but there are many safeguards to prevent that from happening," Park said.
In related news, the entire El Salvador core is mining bitcoin through its ambitious bitcoin mining project with Volcano, which has already mined the first satoshis, a small portion of bitcoin.
Compound DeFi bugs lead to $162 million in COMP token donation