DeFi protocol Compound (COMP) found a bug in Governance Proposition 117 designed to upgrade its price feed, forcing it to temporarily freeze the Compound ETH (cETH) market.
An hour ago Proposition 117 ran to update the price feed used by Compound v2.
This price feed was audited by three auditors and contained errors that caused trades between ETH suppliers and borrowers to revert.https://t.co/a2DFk7h0ET
— Compound Labs (@compoundfinance) August 30, 2022
According to a Twitter thread dated August 30, the bug “reverted trades between ETH providers and borrowers.”
The team said users’ “funds are not in immediate danger,” adding that the interface is currently inaccessible due to “price discrepancies.”
According to Compound Lab CEO Robert Leshner, users at risk of liquidation can still add Ether collateral.he Said:
“No user should be exposed to the risk of liquidation or loss of funds.”
Proposition 117 was designed to update the lending protocol oracle contract to a new version that uses Uniswap V3 instead of V2 for its price feed. Proposed on behalf of ChainLink by GFX Labs.
This proposal was audited by OpenZeppelin, Dedaub, and ABDK, but all overlooked bugs.
defect
open zeppelin update Clarified that the ‘getUnderlyingPrice’ function was the source of the bug. He went on to say that the cETH market did not have this feature as it was supposed to with the Oracle upgrade.
This function returns an empty byte each time it is called, thus undoing the transaction.
OpenZeppelin wrote:
“The main problem at the moment is the temporary denial of service of the cETH market, which will be resolved by the new governance proposal. will continue to work.”
Suggestion to undo upgrade 119
According to the available information, GFX Labs submitted Proposition 119 to revert the upgrade within an hour of noticing the bug.
The proposal will go through a 7-day governance process for approval and execution.
On the one hand, this bug does not appear to have directly impacted the price performance of Compound’s COMP token. The token has been trading in a red candlestick for the past 30 days. Its value has fallen by about 4% over the past 24 hours, trading at $48.
