{"id":66546,"date":"2022-08-31T15:41:44","date_gmt":"2022-08-31T12:41:44","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=66546"},"modified":"2025-09-07T01:55:19","modified_gmt":"2025-09-06T22:55:19","slug":"compound-temporarily-freezes-ceth-operations-due-to-protocol-update-error","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/compound-temporarily-freezes-ceth-operations-due-to-protocol-update-error\/","title":{"rendered":"Compound temporarily freezes cETH operations due to protocol update error"},"content":{"rendered":"<p>The lending protocol <a href=\"https:\/\/forklog.com\/en\/news\/what-is-compound-comp\">Compound<\/a> halted lending and the withdrawal of collateral for cETH tokens after the discovery of an error in the activated Proposal 117. The proposal updated the price feeds for Compound v2.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">An hour ago, Proposal 117 was executed, which updated the price feed that Compound v2 uses.<\/p>\n<p>This price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.<a href=\"https:\/\/t.co\/a2DFk7h0ET\">https:\/\/t.co\/a2DFk7h0ET<\/a><\/p>\n<p>\u2014 Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1564695152626655234?ref_src=twsrc%5Etfw\">August 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The bug leads to the cancellation of transactions for ETH suppliers and borrowers. The code was audited by OpenZeppelin, Dedaub and ABDK.<\/p>\n<p>Some users suggested that developers may have introduced the code after it had been reviewed by auditing firms.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The three auditors mentioned are <a href=\"https:\/\/twitter.com\/dedaub?ref_src=twsrc%5Etfw\">@dedaub<\/a>, ABDK and <a href=\"https:\/\/twitter.com\/OpenZeppelin?ref_src=twsrc%5Etfw\">@OpenZeppelin<\/a>. Their reports are dated 29th Nov 2021, 27th Dec 2021 and 1st April 2022, respectively.<\/p>\n<p>The gov proposal is dated a week ago. I wonder if the code was frozen since April or it had undergone changes? <a href=\"https:\/\/t.co\/5k2DvIJLzs\">https:\/\/t.co\/5k2DvIJLzs<\/a><\/p>\n<p>\u2014 axic.eth (@alexberegszaszi) <a href=\"https:\/\/twitter.com\/alexberegszaszi\/status\/1564703779575971841?ref_src=twsrc%5Etfw\">August 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>The team said there are no risks to users\u2019 funds. The protocol still allows adding collateral, including Ether. The interface will be unavailable for some time due to a \u201cprice discrepancy,\u201d the developers warned.<\/p>\n<blockquote class=\"twitter-tweet\" data-conversation=\"none\">\n<p lang=\"en\" dir=\"ltr\">All users should still be able to add collateral, even Ether collateral.<\/p>\n<p>The interface is currently not loading, due to this price discrepancy, but will be operational again shortly.<\/p>\n<p>\u2014 Compound Labs (@compoundfinance) <a href=\"https:\/\/twitter.com\/compoundfinance\/status\/1564701805120045063?ref_src=twsrc%5Etfw\">August 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Proposal 117 proposed by GFX Labs on behalf of <a href=\"https:\/\/forklog.com\/en\/news\/what-is-chainlink-link\">Chainlink<\/a> to update price feed oracle contracts from version 2 to version 3 <a href=\"https:\/\/forklog.com\/en\/news\/what-is-uniswap-uni\">Uniswap<\/a>.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>The main issue is a temporary outage of the cETH market, which will be addressed by a new governance proposal. At present, no funds are at risk. The other cToken markets on Compound V2 and all V3 markets remain functional<\/em>, OpenZeppelin explained.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Read the following post for details on a Compound incident we are working to resolve for the cETH market. A fix is already underway and no funds are at risk at this time. The rest of the cToken markets on Compound V2 and all of V3 remain functional.<a href=\"https:\/\/t.co\/CiSE3a99Wa\">https:\/\/t.co\/CiSE3a99Wa<\/a><\/p>\n<p>\u2014 OpenZeppelin (@OpenZeppelin) <a href=\"https:\/\/twitter.com\/OpenZeppelin\/status\/1564741880016883712?ref_src=twsrc%5Etfw\">August 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>An hour after the incident, GFX Labs proposed Proposal 119 to revoke Proposal 117. It will take effect seven days after adoption, in accordance with the governance process.<\/p>\n<p>Polygon&#8217;s head of information security, Mudit Gupta, expressed disappointment with the prolonged lock.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p><em>This is the second time in the last few months that Compound has been &#8216;rekt&#8217; for seven days. Temporary blocks are not always good. Stop using them so bluntly<\/em>, \u2014 he said.<\/p>\n<\/blockquote>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">This is the second time in last few months that compound has been rekt because their governance has a 7 day timelock.<\/p>\n<p>I don\u2019t know who needs to hear this but timelocks are not always good. They have tradeoffs.<\/p>\n<p>Stop blindly shilling timelocks. Thanks.<\/p>\n<p>\u2014 Mudit Gupta (@Mudit__Gupta) <a href=\"https:\/\/twitter.com\/Mudit__Gupta\/status\/1564794780869046272?ref_src=twsrc%5Etfw\">August 31, 2022<\/a><\/p><\/blockquote>\n<p> <script async=\"\" src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Update issues did not significantly affect the project\u2019s governance token. In the last 24 hours, Compound fell 1.7% amid mixed moves in DeFi assets, according to CoinGecko.<\/p>\n<p>In September 2021, the project <a href=\"https:\/\/forklog.com\/en\/news\/compound-suffers-multimillion-dollar-losses-due-to-protocol-update-bug\"> suffered multi-million losses<\/a> due to an error in the protocol update.<\/p>\n<p>Read ForkLog&#8217;s bitcoin news on our <a href=\"\/\/telegram.me\/forklog\u201d\" target=\"\u201c_blank\u201d\" rel=\"\u201cnofollow\u201d noopener\">Telegram<\/a> \u2014 cryptocurrency news, rates and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The lending protocol {{AOPEN_1}}Compound{{ACLOSE_1}} halted lending and the withdrawal of collateral for cETH tokens after the discovery of an error in the activated Proposal 117. The proposal updated the price feeds for Compound v2.<\/p>\n","protected":false},"author":1,"featured_media":66547,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1301,1494,1093],"class_list":["post-66546","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockchain-vulnerabilities","tag-compound-comp","tag-defi"],"aioseo_notices":[],"amp_enabled":true,"views":"25","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66546","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=66546"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66546\/revisions"}],"predecessor-version":[{"id":66548,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/66546\/revisions\/66548"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/66547"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=66546"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=66546"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=66546"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}