The Compound Finance （COMP） treasury has lost $25 million due to a recent governance exploit, raising concerns about DeFi governance.
Points
- $25 million drained from Compound’s treasury
- Governance exploit led by crypto whale Humpy
- Critical issue in DeFi governance highlighted
- New staking product proposed to address governance risks
The Compound Finance （COMP） treasury has been drained of $25 million following a governance exploit. The attack began with an initial proposal to grant 92,000 COMP tokens, submitted without prior discussion on the Compound DAO forum. Despite warnings from security advisors, the proposal received minimal engagement from the community.
Crypto whale Humpy later returned with a third proposal requesting 499,000 COMP tokens, which passed with only 57 addresses casting votes. This incident reveals critical issues in DeFi governance, where a small number of participants can exert significant influence.
In response, Compound has withdrawn Proposal 289 and introduced a new staking product. This product aims to enhance the utility of COMP tokens by distributing 30% of fresh token reserves annually to staked COMP holders. This proposal has received support from various Compound delegates and security experts.
解説
- The governance exploit highlights vulnerabilities in decentralized finance （DeFi） governance structures.
- The low participation in governance votes allows a few individuals to control significant decisions, posing risks to the community.
- Introducing a new staking product aims to mitigate these risks and enhance the utility of COMP tokens, potentially restoring confidence in the platform.