7-Day Wait for Vote to Fix Compound CETH Market Bricked By Update

A recent governance proposal to update the pricing feeds of Compound, a decentralized lending platform, was hampered by a programming error.

Although the Compound ETH (cETH) market has "temporarily halted" due to the coding fault, Compound Labs assured users that their money is not in danger right away despite the front end's malfunction.

On August 31, Compound Labs revealed that the code error originated from Proposal 117: Compound Oracle Upgrade v3, which had just been put into place to upgrade the oracle contracts on the Compound protocol to a new version that uses Uniswap V3 rather than V2 for price feeds.

Compound Labs stated that it intended to use Proposal 119: Oracle Update to return to the prior price feed in response to the cETH market briefly freezing.

Despite being created less than an hour after Proposal 117 was carried out, the new proposal must now go through a seven-day governance process before it can go into effect.

According to an update from OpenZeppelin Security Solutions Architect Michael Lewellen, the "getUnderlyingPrice" method contained a problem that resulted in empty bytes being returned and the call being reverted because it failed to update the price of cETH tokens.

Lewellen added that no money is in jeopardy:

Initial coin offerings (ICOs) would be permitted under the Digital Assets Framework Act, the South Korean central bank has said, according to a local news report.

The new governance approach will address the current main problem, which is a brief denial of service for the cETH market.

There are currently no funds at risk. All of V3 and the remaining cToken marketplaces on Compound V2 are still operational.

Lewellen did add, though, that "any users that deposited ETH and acquired cETH for starting borrow positions must be informed that they might get promptly liquidated whenever the fix proposal occurs if by that point the price of ETH has plummeted significantly."

However, Robert Leshner, the CEO of Compound Labs, also said that customers could still pay off any debt and provide security to prevent liquidation.

Compound Labs revealed that despite the Oracle contract having through three independent smart contract audits, including most recently by OpenZeppelin and ChainSecurity, the coding problem persisted.

With 696,665 votes cast for the price feed improvement across 245 different wallet addresses, proposal 117 itself didn't seem to be a contentious one.

The proposal received the highest votes (306,146) in support from the cryptocurrency investment company Polychain Capital.

With $2.67 billion in total value locked up, Compound is the third-largest decentralized lending network, according to DeFi Llama (TVL).

The price of the COMP token, which is presently trading at $48.27, has not yet changed as a result of the announcement.

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