{"id":15619,"date":"2024-07-29T10:25:41","date_gmt":"2024-07-29T07:25:41","guid":{"rendered":"https:\/\/forklog.com\/en\/compound-community-suspects-governance-attack\/"},"modified":"2024-07-29T10:25:41","modified_gmt":"2024-07-29T07:25:41","slug":"compound-community-suspects-governance-attack","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/compound-community-suspects-governance-attack\/","title":{"rendered":"Compound Community Suspects Governance Attack"},"content":{"rendered":"

The DeFi liquidity platform Compound Finance approved<\/a> proposal 289, but the project’s community has raised suspicions of a potential “governance attack.” <\/p>\n

The initiative involves allocating 5% of Compound’s treasury (499,000 COMP tokens valued at approximately $24.1 million) to the yield protocol GoldCOMP, developed by the Golden Boys team. <\/p>\n

The proposal passed by a narrow margin of votes\u2014682,191 to 633,636. Only 57 addresses participated in the decision-making process. <\/p>\n

Community members assert that there is more to the voting outcome than meets the eye. A similar proposal was rejected<\/a> by project participants in May, which involved transferring only 92,000 COMP to the Golden Boys. <\/p>\n

Subsequently, OpenZeppelin security solutions developer Michael Lewellen linked<\/a> several accounts accumulating COMP on the open market to proposals for redirecting coins to fund GoldCOMP. <\/p>\n

The researcher identified five addresses collectively holding 230,333 COMP, slightly more than half of the 400,000 token quorum threshold needed to pass a proposal.<\/p>\n

\n

“In my personal opinion, the actions of the Golden Boys could be considered a governance attack if they continue their attempts to withdraw funds from the protocol, clearly against the will of all other Compound DAO delegates,” added Lewellen. <\/p>\n<\/blockquote>\n

In response to the warning, several community members, including Wintermute Governance, Columbia Blockchain, Penn Blockchain, and StableLab, expressed similar concerns<\/a>. <\/p>\n

Ultimately, the proposal was accepted on the third attempt. The leader of the Golden Boys, known as Humpy, attempted to defend his position. <\/p>\n

Under Lewellen’s post, he stated that “stealing funds is an improper and misleading phrase coming from a risk specialist.” According to him, the funds will go through the Trust Setup service with a set of restrictions that will prevent their appropriation. <\/p>\n

In July, the Compound Finance website was hacked, redirecting visitors to phishing pages. <\/p>\n","protected":false},"excerpt":{"rendered":"

The DeFi liquidity platform Compound Finance approved proposal 289, but the project’s community has raised suspicions of a potential “governance attack.” The initiative involves allocating 5% of Compound’s treasury (499,000 COMP tokens valued at approximately $24.1 million) to the yield protocol GoldCOMP, developed by the Golden Boys team. The proposal passed by a narrow margin […]<\/p>\n","protected":false},"author":1,"featured_media":15618,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[755,1494,785],"class_list":["post-15619","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-community","tag-compound-comp","tag-voting"],"aioseo_notices":[],"amp_enabled":true,"views":"16","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15619","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=15619"}],"version-history":[{"count":0,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/15619\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/15618"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=15619"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=15619"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=15619"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}