By Lucas Williams
Users of Ethereum blockchain are rushing to the network because due to a bug, a DeFi project known as “Compound”, is offering users to claim tokens worth more than US$ 88 Million. The bug, which hasn’t been fixed yet, occurred when a Defi proposal was implemented by the project for amending the contract which was supposed to reward the users with the tokens. Robert Leshner, founder of Compound, is saying that they would have to let the bug prevail for the time being because the network will have to wait for at least seven days.
Decentralized Finance (DeFi) is yet another craze that relates to a trillion-dollar industry i.e. crypto. The use of virtual currencies has sparked a worldwide phenomenon while the use of DeFi has caused a massive disruption in the financial market. However, the disruption is not in any negative sense, instead it has been drawing too much attention in the decentralized finance sector.
One such Defi project, attracting great number of users is “Compound”, which is available on Ethereum Blockchain. The project was being upgraded recently to incorporate advanced features and protocols. However, the upgrade contained a bug, which inflicted the project. Consequently, because of the bug, the users started to receive tokens and so far has collectively received tokens amounting to US$ 90 Million approximately.
The bug was generated with the upgradation which was meant to amend the users’ contracts. The users’ contracts contained a mechanism of rewarding tokens to users, however, the bug increased the rewards. Before bug could have been identified, it was already too late because US$88 Million worth of tokens were accordingly distributed amongst project users.
After coming to know that users were paid in excess of their due rewards, the founder of the project namely Robert Leshner had to come out and plead. He pleaded to the beneficiaries who received tokens amounting to US$ 88 Million to return them voluntary. Those who will refund the fund will be entitled to keep the 10% of the funds they will be reverting back, said Leshner.
He also warned those who somehow opt not to revert back the funds, Leshner had a message for them. He said that if someone will not return the funds then the person will be bound to show the funds received as income. Resultantly, the income, with no source at all, will attract IRS’s attention and will cause difficulties for the person.
The effect of the bug were also apparent on the native token of Compound namely COMP. The value of COMP decreased after the news of bug/mistake went viral. However, at present, most of the lost value decrease has been recovered. Yet the issue remains the same i.e. whether the users will be reverting back the funds or not.