Communications of the ACM
DeFi Platform Mistakenly Sends $89 Million; CEO Begs Return
Compound CEO Robert Leshner said the mistake shows that Compounds protocol needs to have a lengthier review process and more community developers hunting for errors before changes are introduced.
Credit: Compound
The decentralized finance (DeFi) platform Compound mistakenly sent users almost $90 million in cryptocurrency due to a bug in a recent update, and CEO Robert Leshner is calling on users to return it voluntarily.
DeFi platforms rely on "smart contracts" between users that are governed entirely by computer code.
Compound also distributes COMP tokens that give users a say in how the protocol works.
Leshner noted that the error involved 280,000 COMP tokens worth about $89.3 million that were distributed on Oct. 1.
Said University of Pennsylvania Wharton School's Kevin Werbach, "The vast majority of people in the world are not going to trust their money to something if they are told a bug will cause you immutably to lose everything."
From Bloomberg
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