It is expected that the total number of tokens will exceed $85 million.
Compound Finance, a DeFi interest rate protocol, has reported a token distribution bug within its newly implemented Proposal 062, which is overpaying suppliers by tens of millions of dollars.
The upgrade was designed to “split COMP rewards distribution and bug fixes” and was fully tested and found to be error-free. However, the team noticed “unusual activity” within hours, stating that “Compound Labs and members of the community are investigating discrepancies in the COMP distribution.”
Regardless of the developments, the team has stated that no funds, whether supplied or borrowed, are in jeopardy. Users of the protocol are reporting large windfalls, with one claiming a deposit of 70 million COMP tokens, equivalent to $20 million, into their account.
Robert Leshner, the founder of Compound Labs, provided some insight into the events:
“Proposal 62 and the new contract were written by a community member and reviewed by several other members of the community. This is the greatest opportunity, as well as the greatest risk, for a decentralized protocol: an open development process allows a bug to enter production.”
In a series of tweets, SushiSwap Super-Coder Mudit Gupta revealed that the error was caused by a single letter bug.
About 240k COMP tokens (~$70m) have been given away already and another 40k (~$13m) will likely be given away soon. If you had supplied tokens before today, go try your luck.
It will be interesting to see if Compound requests users to return the extra tokens (like Alchemix did)
— Mudit Gupta (@Mudit__Gupta) September 30, 2021