Decentralized finance (DeFi) lending protocol Compound (COMP) has discovered a bug in the code that causes transactions to bounce back for Ethereum (ETH) suppliers and users. Then Compound stopped trading Ethereum (cETH). Here are the details…
Compound has stopped trading cETH
Compound Finance, a borrowing and lending platform, has run a management recommendation that updates Chainlink price feeds that contain a code error. This code error resulted in a rollback of cETH lenders and borrowers. This means that users cannot borrow or withdraw collateral. Users will be able to repay debt and add collateral to borrowed positions along with other assets to avoid potential liquidation. The code error also caused Compound’s frontend to stop working temporarily.
Users of the COMP protocol receive cETH when they deposit ETH on the platform. cETH was first introduced in early 2020. It was one of the first tokens used for Yield farming. Compound says the code in the proposal, which aims to update the price stream, has been overseen by three separate teams. A fix is coming in the next code quote. But it will take seven days to take effect. Compound used the following statements in a tweet:
All users should be able to add collateral, even ETH collateral. The interface is currently not loading due to this price difference, but will be up and running again soon.
An hour ago, Proposal 117 was executed, which updated the price feed that Compound v2 uses.
This price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.https://t.co/a2DFk7h0ET
— Compound Labs (@compoundfinance) August 30, 2022
COMP founder made a statement
“No funds seem to be at risk,” Compound founder Robert Leshner said on Discord. “CETH will probably take seven days to start operating normally. “There will potentially be more management suggestions to rectify the situation,” he said. A new management recommendation has been introduced to revert to previously used price feeds. As we have reported, this offer will take seven days to go into effect, so the cETH market has been temporarily frozen. Users cannot borrow or withdraw collateral. According to DeFiLlama, Compound currently ranks third in terms of total value locked in the decentralized lending market.
Meanwhile, Compound’s price seems unaffected by this news. Ranked #123 with a market cap of $325 million, COMP is currently down 3.1 percent. The cryptocurrency is changing hands at $47.58, losing 3.1 percent in the last 24 hours. The 7-day change of the coin is in the form of a 6.5 percent loss. On the other hand, it has lost 22.3 percent in the last 14 days. Finally, Ethereum-pegged cETH is trading at $1,575, in line with ETH price.
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