As per the latest report, Compound Finance has made an announcement in regards to facing a huge problem. The interest rate protocol in the decentralized finance (DeFi) sector has announced that it has suffered an unusual token distribution from its protocol to the users.
Compound Finance has announced that funds were transferred to several users and the transfers were triggered automatically due to a bug. The firm has revealed that it is a token distribution bug that has caused all the ruckus for the platform.
The firm has revealed that they have discovered that the particular bug is found within Proposal 062 that they have recently implemented. Compound Finance has revealed that as a result of the bug, the suppliers are being over-rewarded. This has led to many suppliers/users receiving several million dollars worth of tokens.
The firm has announced that they had implemented Proposal 062 in order to split the bug fixes and COMP rewards distribution. Following the implementation and proper testing, the upgrade was verified and had no issues in it at all.
However, things went south when the development team for the upgrade noticed an unusual activity within a few hours of the upgrade being implemented. Since the unusual activity, the community members, as well as the teams at Compound Labs, have been trying to find the root of the problem.
The Compound Labs teams have revealed that they are closely monitoring the situation and are trying to get to the bottom of the matter at the earliest. As of now, they are investigating any kind of discrepancies they are noticing with the COMP distribution.
The firm has revealed that despite the issue, no funds have been lost or have gone missing. Therefore, the teams have confirmed that they can safely say non to the borrowed or supplied funds are at any kind of risk.
The protocol users have reported that they have started seeing large deposits being made into their accounts. Some users have reported that they could see a total of 70 million COMP tokens being transferred to their account. At the time of writing, the 70 million COMP token figure translates to $20 million.
Robert Leshner, the founder of Compound Labs has provided information into the matter. He has clarified that the development teams at the firm as well as the community members were the ones who review new contracts and Proposal 62.
At that time, they had found no such bug or issue that could lead to this kind of discrepancy. However, the problem has indeed taken place and for them, the top priority is to get to the bottom of it and not let something like this happen again.