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.
Compound Suspends Four Tokens To Protect From Security Attacks 3

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.

Compound Suspends Four Tokens To Protect From Security Attacks 4

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

Harold

With a passion for untangling the complexities of the financial world, I've spent over four years in financial journalism, covering everything from traditional equities to the cutting edge of venture capital. "The financial markets are a fascinating puzzle," I often say, "and I love helping people make sense of them." That's what drives me to bring clear and insightful financial journalism to the readers of Coincu.

Recent Posts

Crypto PAC Fairshake Continues to Boost 2026 Election With Support from a16z

a16z and Coinbase have pledged substantial funds to crypto PAC Fairshake, aiming to support crypto-friendly…

40 mins ago

Bitcoin, Ethereum, And Solana Lead Crypto Market, But Not For Long With New AI Altcoin With 30,000% Potential, Expert Says

Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) dominate the crypto market, but experts warn that…

4 hours ago

Dogecoin Price Prediction: Will DOGE Ever Hit $0.7 Again? Why ETFSwap (ETFS) Is The Best Alternative For 100x Gains

Discover the future as the Dogecoin price aims for a $0.7 comeback and discover why…

7 hours ago

Step into BlockDAG’s Presale Frenzy This November: Secure a Massive 100% Bonus with BDAG100!

November is the perfect time for BlockDAG's huge presale. Use BDAG100 to double your purchase.…

9 hours ago

This website uses cookies.