Compound cETH market bricked by update — 7-day wait on vote to fix it
Decentralized lending platform Compound has been stricken by a code bug in a current governance proposal to replace its worth feeds.
The code error has “quickly frozen” the Compound ETH (cETH) market, inflicting cETH transactions to revert, however Compound Labs acknowledged that regardless of the entrance finish not working, “funds should not instantly in danger.”
Compound Labs introduced on Aug. 31 that the code bug got here from Proposal 117: Compound Oracle Improve v3, which was applied a few hours in the past to replace the oracle contracts on the Compound protocol to a brand new model that makes use of Uniswap V3 as an alternative of V2 for worth feeds.
An hour in the past, Proposal 117 was executed, which up to date the value feed that Compound v2 makes use of.
This worth feed, whereas audited by three auditors, contained an error that’s inflicting transactions for ETH suppliers and debtors to revert.https://t.co/a2DFk7h0ET
— Compound Labs (@compoundfinance) August 30, 2022
In response to the cETH market quickly freezing, Compound Labs mentioned it aimed to revert to the earlier worth feed by way of Proposal 119: Oracle Replace. The brand new proposal was created lower than one hour after Proposal 117 had been executed, nevertheless it now must undergo seven-day governance course of earlier than taking impact.
Based on an update from Safety Options Architect Michael Lewellen of OpenZeppelin, the code bug got here from the “getUnderlyingPrice” perform, which didn’t replace the value of cETH tokens, which might return empty bytes and trigger the decision to be reverted.
Learn the next put up for particulars on a Compound incident we’re working to resolve for the cETH market. A repair is already underway and no funds are in danger right now. The remainder of the cToken markets on Compound V2 and all of V3 stay practical.https://t.co/CiSE3a99Wa
— OpenZeppelin (@OpenZeppelin) August 30, 2022
Lewellen additionally reaffirmed that no funds are in danger:
“The first concern proper now’s a short lived denial of service for the cETH market which can be resolved by the brand new governance proposal. No funds are in danger right now. The remainder of the cToken markets on Compound V2 and all of V3 stay practical.”
Nevertheless, Lewellen added that “any customers that deposited ETH and obtained cETH for opening borrow positions should be conscious that they could get immediately liquidated at any time when the repair proposal executes if by that point the value of ETH has dropped considerably.”
However the CEO of Compound Labs Robert Leshner additionally added that customers can nonetheless repay any debt and add collateral to keep away from liquidation.
Associated: What is a brilliant contract safety audit? A newbie’s information
Compound Labs famous the code bug got here regardless of the oracle contract being audited from three separate good contract auditing corporations, with OpenZeppelin and ChainSecurity among the many current companies to have audited Compound’s good contracts.
Proposal 117 itself didn’t look like a controversial one, with all 696,665 votes from 245 totally different pockets addresses in favor of the value feed improve. Crypto funding agency Polychain Capital forged probably the most votes (306,146) in favor of the proposal.
Based on DeFi Llama, Compound is the third largest decentralized lending platform, with $2.67 billion whole worth locked (TVL). The information has not affected the Compound token, COMP, thus far which is at present priced at $48.27.
