A day after Bitfinex mistakenly pays more than $22 million worth of tokens to a mining pool, DeFi-based interest rate protocol Compound Finance seemingly fell on the same kind of incident – this time mistakenly rewarding its users over $70 million.
The DeFi protocol traced back the origin of the over-rewarding incident and discovered a token distribution bug deep within its newly-launched Proposal 062. While the particular upgrade was developed to fix a few underlying bugs and riven COMP rewards distribution, the team behind the project discovered hours in on its implementation something unusual.
This is what led Compound Finance to the root of the problem, but not before it has mistakenly rewarded unsuspecting users millions of dollars. One user even claims that his account suddenly received a deposit of 70 million COMP, which is about $20 million in today’s exchanges. However, despite all that, Compound Finance reassures everyone that no user funds, either borrowed or supplied, were put at risk.
SushiSwap’s Super-Coder, Mudit Gupta, revealed in his recent tweet that a single letter bug was responsible for the significant error. As of press time, Compound Finance has yet to request its users to return the erroneous token rewards formally.