We were under the impression, and we have thought that the carnage was over for popular decentralized finance, or DeFi, staking protocol Compound. However, that was not the case, and the prediction could not have been more wrong.
In the possible turn of events, we have found out that, as it turns out, millions of more worth of money and even more than what we had ever thought of are at risk right now. About $162 million is up for grabs for anyone who wishes it. This is immediately after an upgrade that had gone very wrong. This is all according to Robert Leshner, founder of Compound Labs.
The price of the Compound’s native token that we are all aware of and in general and easy term it is called comp is down about 4.8% by now. Cryptocurrency is at high risk here right now, and people and invested people are panicking a bit over it, not knowing where the situation might lead eventually. Since the predicted outcome was not happening, it had rattled quite a few people.
In the beginning, the Compound chief made the situation-aware to the public when he tweeted on Friday that there was a capacity or cap to how many comp tokens had been the possibility range and that could be accidentally distributed. He also noted that “the impact is bounded, at worst, 280,000 comp tokens,” or about $92.6 million.
However, on Sunday morning, Leshner made it known to the public by revealing that the pool of cash that is known to have had already been emptied once, now they had been replenished – thus they are there exposing another 202,472.5 comp tokens to exploit, or if you want to talk in terms of cold cash then that’s roughly $66.9 million at its current price.
“The crypto market had gone bold, and then they have shrugged off the largest-ever fund loss in a manner that made it seem as if it was nothing,” said Mudit Gupta, developer at decentralized crypto exchange SushiSwap. “The future for DeFi is most probably seemingly bright, but right now, we are in uncharted territory.”