Some users of the decentralized finance project (DeFi) Compound were surprised on Wednesday night (29) to receive in their wallets much greater rewards than they should get for providing liquidity for the protocol.
According reported On Twitter, the project’s founder, Robert Leshner, the confusion began in the evening shortly after the Compound’s Proposal 062, responsible for updating the contract that distributes COMP tokens to users, came into effect.
In one of the smart contracts there was a bug that caused some liquidity providers to receive many more COMP tokens than anticipated.
The Twitter profile @napgener was one of the first to identify the problem to notice that three users received a total of $15 million in COMP for providing small amounts of USDC, ETH and DAI in platform pools.
In the early hours of this Thursday, another user managed to claim a $27 million COMP reward on his own.
A few hours ago, Proposal 62 went into effect, updating the Comptroller contract, which distributes COMP to users of the protocol.
The new Comptroller contract contains a bug, causing some users to receive far too much COMP. https://t.co/Fy6nLgDqKy— Robert Leshner (@rleshner) September 30, 2021
Compound is a popular loan protocol that started the craze for yield farming when it was released about a year ago. Users can earn interest by borrowing their cryptocurrencies in the platform’s pools.
According to Leshner, the bug’s impact is limited and, at worst, could cost 280,000 COMP tokens for the protocol, equivalent to $84.8 million at the current currency rate.
According to CoinMarketCap, the COMP is trading at $303, down 8% in the last 24 hours, probably caused by the bug found in the update.
However, the project’s founder reassured the community that all funds deposited in the pools are safe. “Users don’t have to worry; the only risk is that you (or another user) will receive an unfairly large amount of COMP,” wrote Leshner.
The downside of decentralization
Proposal 062 that contained the bug was submitted by developer Tyler Loewen, and was reviewed by other project participants before being approved by the community.
Even so, the bug went unnoticed. According to Robert Leshner, although the error was later identified, there is nothing that can be done in the short term to resolve the problem since there are no administrator controls that can disable the COMP distribution.
“Any change to the protocol requires a seven-day governance process to go into production. […] This is the biggest opportunity and the biggest risk for a decentralized protocol — that an open development process allows a bug to go into production.” he wrote.
The Compound is currently the fifth-largest decentralized finance protocol in the world, with a total blocked amount (TVL) of $9.6 billion, according to the DeFi Llama.
BadgerDAO: Hackers drain $10 million in latest DeFi breach
- BadgerDAO suffers $10 million hack
- Traders were sent illicit permission notifications
- BADGER loses 15% of its value
The decentralized finance industry of the crypto sector has now become one of the most sought-after industries. This is because it provides users with anonymity, and they can carry out their activities without the prying eyes of financial institutions. Furthermore, traders are open to making huge amounts of profits in the protocols in the sector by staking or farming. However, some illicit actors would rather exploit and steal from people instead of making their profits. In yet another hack case in the DeFi sector, hackers have exploited BadgerDAO, draining $10 million from the decentralized finance protocol.
Traders got illicit permission notifications
BadgerDAO is a protocol in the decentralized finance sector that allows traders access to various lending services and takes collateral in Bitcoin. According to the platform, upon calculating funds missing through the exploits, things are sitting around $10 million. In the reports that made the rounds today, users claimed that the hack was perpetrated through BadgerDAO’s interface and not its smart contracts like most hacks. Users claimed they were sent notifications about allowing new permissions while carrying out activities on the platform. With some users allowing the permissions, the hackers could cart away various amounts of digital assets going to a worth of $10 million.
BadgerDAO’s native token plummets
After the hack, the protocol developers said that users complained that they witnessed the unauthorized drawing of funds from their accounts. However, the protocol has moved into action swiftly, putting everything on the protocol on hold at the moment. The developers have also claimed that engineers are working tirelessly to fix the issue and ascertain the level of damage that the breach may have caused. However, BadgerDAO has refused to comment on the exact amount of missing funds on the platform and the level of damage that needs repair before operations can continue.
Some analysis websites have claimed that the amount exploited from the platform is $100 million. After the hack, the native token of the platform, BADGER, dipped in value, losing about 15% of its value, and is currently trading around $22. Hacks have now become predominant in the DeFi sector as the year draws to a close. Some days ago, MonoX, another DeFi protocol, got hacked with the illicit actors carting away more than $30 million in different digital assets.
Someone Just Lost $50 Million Worth of Bitcoin to DeFi Hacker
A single user of the Badger DAO protocol has lost a whopping $50 million worth of Bitcoin to a hacker
Badger DAO, a Bitcoin-focused decentralized finance project built on the Ethereum blockchain, has been drained of roughly $100 million as a result of a nasty front-end attack.
A single user has lost 896 BTC (roughly $50 million), according to blockchain security company PeckShield.
In a Twitter statement, the team has acknowledged reports of unauthorized withdrawals, adding that its engineers are investigating the issue.
The protocol’s smart contracts have been temporarily halted.
Badger has received reports of unauthorized withdrawals of user funds.
As Badger engineers investigate this, all smart contracts have been paused to prevent further withdrawals.
Our investigation is ongoing and we will release further information as soon as possible.— ₿adgerDAO 🦡 (@BadgerDAO) December 2, 2021
According to data provided by DeFi Pulse, Badger DAO is the 23rd biggest DeFi protocol on Ethereum. Last month, it topped $1 billion in total value locked.
Badger DAO allows users to earn passive income with Bitcoin by converting it to either Wrapped Bitcoin (WBTC) or renBTC and depositing it into Sett vaults that algorithmically allocate and autocompound users’ yields.
The hack happened just days before the yield vault protocol’s one-year anniversary.
BADGER, the native token of the Badger DAO project, is down 15.3% on the news, according to CoinGecko data.
GameX Ecosystem: Emerging DAO in World of Gaming and DeFi
GameX is an emerging protocol that was built by gamers in a bid to promote the integration of games in today’s fast-growing decentralized finance (DeFi) ecosystem. Despite the fact that the blockchain and specifically the DeFi ecosystem is still in its infancy, the past year has seen the emergence of innovative projects that are notably disrupting mainstream finance. GameX is no exception.
Built on the Binance Smart Chain (BSC) network, the GameX protocol seeks to become a one-stop-shop for many aspects of decentralized gaming. This includes developing games that users can play, incorporating Non-Fungible Token (NFT) capabilities, and also rewarding users for contributing to its ecosystem development.
Gamex NFT Marketplace
GameX protocol is in the last phases of developing its NFT marketplace where digital artworks and collectibles built through the BEP-721 standard will be supported. The GameX NFT marketplace is a dynamic one and permits creators to mint their digital piece, with additional permissions that can let them list it for sale immediately or at a later time in the future.
The protocol maintains a very good standard for the operations of its NFT marketplace and will provide a verification capability to enable users to deal with trusted creators only. While the verification badge will be obtainable easily by just filling out a form, the applicant or creator will be required to provide enough documentation in order to get verified.
According to GameX, “verified badges are granted to creators and collectors that show enough proof of authenticity and active dedication to the marketplace. We are looking at multiple factors such as active social media presence and following, dialogue with community members, number of minted and sold items.”
GameX NFT marketplace listed items will also be subject to royalty rewards which are charged when a listed item is resold.
The XGAMEX token that is designed as a reward system for GameX game players, as well as the buyers and sellers of listed NFTs.
Over the next months, the platform is set to release a play-to-earn racing game (META RACE) in which players will be able to compete against each other. Drawing from its broad capabilities, there is bound to be an NFT incorporation into the racing game, a move that is billed to further enhance the broad embrace of the gaming outfit.