Decentralized finance (DeFi) interest rate protocol Compound Finance has reported a token distribution bug within its newly implemented Proposal 062, which is over-rewarding suppliers into the tens of millions of dollars.
The upgrade was designed to “split COMP rewards distribution and bug fixes” and was fully verified without issues. However, within hours, the team noted “unusual activity,” stating that “Compound Labs and members of the community are investigating discrepancies in the COMP distribution.”
Despite the developments, the team has stressed that no funds either supplied or borrowed are at risk. Users of the protocol are reporting sizable windfalls, one claiming a deposit of 70 million COMP tokens into their account, equivalent to $20 million…read more.