Compound falls into governance attack scandal! Proposal to transfer $24 million to COMP passes

This site (120BtC.coM): A series of recent proposals by the veteran lending protocol Compound have plunged it into a storm of "governance attacks". Among them, the latest passed proposal 289 has been widely accused by the community. It is a small group A large number of $COMP tokens were acquired on the open market, allowing them to force the proposal through the governance process.

It is understood that Proposal 289 was narrowly passed with a vote of 682,191 to 633,636 early this morning. The proposal will allocate 5% of Compound’s treasury, i.e. 499,000 $COMP tokens (current value of approximately US$24 million), to " Golden Boys (led by Humpy)" designed a one-year revenue agreement (goldCOMP treasury).

According to the proposal, when a user deposits $COMP into the goldCOMP treasury, the depositor will receive goldCOMP, a semi-liquid wrapped token that represents their initial deposit. These goldCOMP tokens will be placed in the 99/1Balancer pool, creating a source of passive income for holders who plan to hold COMP for the long term.

Golden Boys have proposed three proposals

In fact, before the proposal was passed:

• Golden Boys proposed Proposal 247 as early as May 6th, intending to invest 5% of Compound’s treasury into goldCOMP’s treasury . At that time, the proposal was canceled because it failed to reach the voting quorum threshold

• Then the Golden Boys proposed Proposal 279 again on July 15, requesting that 92,000 $COMP be transferred to the goldCOMP treasury for a one-year investment , and finally the proposal failed to pass the vote on July 19

• So Proposal 289 was introduced, and the required $COMP was significantly increased from 92,000 to 499,000

Many community members expressed their dissatisfaction with Golden Concerns about the Boys proposal taking full control of diverted funds come after the group tried twice to pass its proposal that initially failed. Michael Lewellen (pseudonym: cylon), Open Zeppelin security solution architect and Compound Finance security consultant, said: In my personal opinion, if Humpy and Golden Boys continue to try to withdraw funds from the protocol, it is clearly against all other Compound DAO representatives. willing, their actions could be viewed as governance attacks.

In response to Lewellen’s security warning, many community members, including Wintermute Governance, Columbia Blockchain, Penn Blockchain, and Stable Lab, have expressed similar concerns.

However, Humpy countered: The statement "stealing funds" is incorrect and misleading, especially when it comes from risk experts at Compound. The investments we require are made through a trust set-up with binding actions that do not allow for theft or diversion of funds.

Can Proposition 290 Stop the Golden Boys Proposal?

With the passage of Proposition 289, its implementation date is set for July 30th. While the subsequent Proposal 290 - Preventive Transfer of Timelock Administrators, which proposed moving the Compound governance timelock administrator to "Community MultiSig", helped prevent future Golden Boys-like proposals, for Proposal 289 this may It's too late.

Under the terms of Proposition 289, the requested 499,000COMP may still be transferred to the goldCOMP treasury around July 30th.

$COMP fell nearly 5%

It may have been worried about a suspected governance attack. $COMP flashed 4% from $49.59 at about 4:30 this morning, with the lowest falling to $47.24, and the maximum drop reaching 4.73%.

It has rebounded before the deadline and is now trading at $48.72, down 4.1% in the past 24 hours.

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