Compound Suspends Four Tokens To Protect From Security Attacks
Protocol for Decentralized Lending Compound has put four tokens on hold as loan collateral on the platform. To safeguard the protocol from market manipulation assaults, the protocol will not enable users to deposit these assets or accept loans.
On Monday, Compound’s governance members accepted Proposal-131, which requested a halt to using assets with poor liquidity as loan collateral. 0x (ZRX), basic attention token (BAT), maker (MKR), and yearn finance (YFI) are the tokens.
The proposal was carried with overwhelming support, with 554,126 votes in favor, or 99.99% of the votes cast. Only one person voted against the idea.
According to the proposal, the four assets were discovered to have poor liquidity characteristics. Prices of liquid assets can be readily influenced. The measure comes following a $114 million price manipulation attack on Mango Markets, a popular loan market on Solana, earlier this month.
In reaction to the Mango exploit, Compound creator Robert Leshner, who voted in support of Proposal-131, stated on the Unchained Podcast that lending methods should examine their risk boundaries.
He went on to say that it acted as a wake-up call for lending standards like Compound Finance. An external analysis of the Compound Finance software discovered that specific Compound tokens might be exploited to steal cash.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
Author
DeFi
Compound Suspends Four Tokens To Protect From Security Attacks
Protocol for Decentralized Lending Compound has put four tokens on hold as loan collateral on the platform. To safeguard the protocol from market manipulation assaults, the protocol will not enable users to deposit these assets or accept loans.
On Monday, Compound’s governance members accepted Proposal-131, which requested a halt to using assets with poor liquidity as loan collateral. 0x (ZRX), basic attention token (BAT), maker (MKR), and yearn finance (YFI) are the tokens.
The proposal was carried with overwhelming support, with 554,126 votes in favor, or 99.99% of the votes cast. Only one person voted against the idea.
According to the proposal, the four assets were discovered to have poor liquidity characteristics. Prices of liquid assets can be readily influenced. The measure comes following a $114 million price manipulation attack on Mango Markets, a popular loan market on Solana, earlier this month.
In reaction to the Mango exploit, Compound creator Robert Leshner, who voted in support of Proposal-131, stated on the Unchained Podcast that lending methods should examine their risk boundaries.
He went on to say that it acted as a wake-up call for lending standards like Compound Finance. An external analysis of the Compound Finance software discovered that specific Compound tokens might be exploited to steal cash.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
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