More than $ 1 million blocked by a Compound clone due to an error in the code

  • The protocol developers admit that some of the funds may be lost forever

  • The incident occurred due to the incompatibility of old and new contracts

  • DeFi protocols are increasingly suffering from vulnerabilities in smart contracts

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An error in the code of the decentralized cryptocurrency lending protocol led to the blocking of $ 1 million of user funds

More than $ 1 million of user funds were on the verge of irrevocable blocking in smart contracts of a Compound clone called Percent Finance. This was reported by the developers of the contract in their official blog. According to the announcement, the funds were frozen due to the update of the interest rate model for USDC, WBTC and ETH tokens. An error in the code has resulted in users being unable to lend, borrow, repay or withdraw loans.

More than $ 1 million blocked by the clone ...

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The amount of blocked funds is $ 446 thousand, 28 WBTC and 313 ETH. In total, about $ 966 thousand were frozen at the current rate, half of which belongs to the wallets of blockchain developers. The developers have already announced that they intend to contact Circle, Coinbase and BitGo to help free some of the cryptocurrencies from blocking..

“Unfortunately, it looks like the blocked ETH could be lost forever, but we are currently working on potential scenarios to help all affected users,” the developers said..

Achilles’ heel

The creators of Percent Finance made it clear that the incident occurred due to the late update of old Ctoken contracts and incompatibility with some of the new ones. Both contracts were forked from Compound.

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This is not the first time a Decentralized Finance Project (DeFi) is a financial services built on blockchain technology that offer users access to an open, efficient and … More …

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More) vulnerability in smart – contracts. At the end of June, for example, unknown persons stole more than $ 500 thousand in ETH and other altcoins from the Balancer DeFi protocol.

More than $ 1 million blocked by the clone ...

Vitalik Buterin, co-founder of the Ethereum ecosystem, has previously announced the vulnerability of smart contracts. Buterin said that interest rates in DeFi projects are significantly higher than those of traditional banks, which makes such products more risky in terms of hacker attacks. Ethereum co-founder doubts even proven platforms and protocols can guarantee reliability over a long period of time.

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