Decentralized finance (DeFi) lending protocol Compound (COMP) has suffered a critical failure, effectively halting the trade of Compound Ether (cETH), after a bug was discovered in the code that causes transactions for suppliers and borrowers of ether to revert.
- Users of the COMP protocol receive cETH when they deposit ether onto the platform.
- cETH was initially introduced in early 2020 and was one of the first tokens used for yield farming, or the practice of staking or lending crypto assets in order to generate high returns or rewards in the form of additional cryptocurrency.
- Compound says the code in the proposal, which aimed to update the price feed, was audited by three separate teams.
- A fix is coming in the next code proposal, but it will take seven days to go into effect.
- “All users should still be able to add collateral, even ether collateral. The interface is currently not loading, due to this price discrepancy, but will be operational again shortly,” Compound tweeted.
- Compound’s COMP protocol token seems largely unaffected by the news, down 1.8% during the last 24 hours.
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