The community of the lending DeFi project Compound voted nearly unanimously to suspend support for illiquid tokens: 0x (ZRX), Basic Attention Token (BAT), Maker (MKR) and Yearn Finance (YFI).
Proposal 131 has passed with quorum. ✅
Proposal 131 pauses supply for cZRX, cBAT, cMKR, and cYFI on Compound v2.
The proposal will be applied in two days. https://t.co/WHPJVt5zyQ
— Compound Governance (@compgovernance) October 24, 2022
The description of the proposal mentions the incident with Mango Markets, in which an attacker managed to withdraw more than $100 million due to oracle price manipulation.
“For precautionary reasons, we propose to suspend support for the aforementioned assets, given their liquidity metrics,” according to the Compound Finance website.
The proposer stressed that removing illiquid assets is also intended to spur a move to the third version of the lending protocol, where “far more resources for risk control”.
Earlier, Compound temporarily froze lending and withdrawal of collateral for cETH tokens.
In September 2022, the project announced the launch of a lending service for institutional investors.
Follow ForkLog’s Bitcoin news on our Telegram — cryptocurrency news, prices and analytics.