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Compound Mistakenly Paid Millions in a Liquidity Mining Reward Program

Compound Has Mistakenly Paid Millions of Dollar News
  • Compound has wrongly paid huge sums of dollars in COMP tokens in a liquidity mining reward program.
  • This shows that there is a flaw in the Compound controller contract.
  • Three Ethereum transactions indicate that users received $15 million for exchanging a small quantity of USDC, ETH, and DAI.

Accidentally, DeFi-based money market, Compound, has paid millions of dollars in COMP tokens through a deliberate activity of a liquidity mining rewards program. Based on the report, the huge amount paid shows that there is a flaw in the Compound controller contract in relation to its recent upgrade.

Leading to the incident, Compound (COMP) hosted the liquidity mining program to reward depositors and borrowers. Timely, the liquidity mining program eventually occurred on Wednesday night. The program gives a threshold rate of a single-digit APY to users.

Upon giving the update, one Twitter user “napgener” also gave an update on the matter. According to “napgener”, users reportedly issued three ETH transactions and received about $15 million in COMP tokens. To highlight, they gained the aforementioned amount in an exchange for borrowing and supplying USDC, ETH, and DAI in a small quantity.

Additionally, Compound CEO Robert Leshner has admitted the Compound feat on Twitter. He even emphasized that the user’s funds are safe despite the exploit. Not limited to this alone, but Leshner further said that only 280,000 COMP tokens are affected now.

Furthermore, shortly after Leshner’s tweet, there is speculation that a user has also claimed 91,000 COMP tokens worth $27 million in one transaction. This exploit seems to have affected COMP’s price greatly. At the time of writing, COMP’s price has declined drastically from $334 to $294.81 according to Coingecko.

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Karikari Daniel is a writer who follows the crypto industry closely. He loves fish stew and Real Madrid. He believes in cryptocurrency’s potential to transform the money landscape in his native country Ghana.