Compound (COMP) stabilizes despite buggy upgrade

October 4, 2021

Compound, the decentralised finance (DeFi) money market, has hit another roadblock with its new protocol upgrade – with almost $150 million dollars worth of the native token (COMP) sitting at risk as a result of a bug on the protocol.

Late last month, Compound released an upgrade that was meant to “split COMP rewards distribution and bug fixes”, however, the upgrade was buggy and offered somewhere between $70 million and $85 million dollars worth of COMP in rewards. Despite the over-rewarding of COMP tokens to users, the team urged that no funds supplied or on loan on the protocol are at risk. The error was investigated and identified early but has hit a major delay in new governance measures meaning that the issue will only be resolved later this week.

Over the weekend, Compound founder tweeted that of the at-risk COMP, 117k has been returned to the community.

He also noted that he is optimistic about the future patches and upgrades of the protocol with the community working as part of the team to manage any buggy upgrades and mitigate risking tokens, offering:

Going forward, I’m optimistic about the patches making their way through the governance process, which fix the distribution, and the community members that are working to manage this bug.”

Compound (COMP) price after the bug

When the bug was first identified, the price of COMP fell quickly by 13%, dropping from trading around $330 to just over $285. Despite the quick crash, COMP’s price managed to recover to trade higher than before the bug, climbing to sit around $340. Currently, it’s just over 65% down from its all-time high seen inMay of this year, where it saw a $910.54 price tag.

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