Compound may decline after smart contract bug

The central theses

• Compound verteilt fälschlicherweise COMP-Belohnungen aufgrund eines Fehlers in einem seiner kürzlich bereitgestellten Smart Contracts.
• Compound-Gründer Robert Leshner sagte, dass 280.000 COMP-Token gefährdet seien.
• Die Transaktionshistorie zeigt, dass ein weiterer Verkaufsdruck den Vermögenswert unter 200 USD abstürzen könnte.

Compound launched a new upgrade this week, but a bug in the code caused $80 million worth of COMP to be distributed unfairly. The incident could lead to a COMP sell-off.

$80 million at risk

Compound looks bearish.

The -based DeFi blue chip released Proposal 62 on Wednesday, introducing two COMP distribution rates for protocol users. However, the new Comptroller contract was implemented with a bug that allows users to borrow certain assets to claim more than their fair share of COMP.

Robert Leshner, the founder of Compound Labs,noticedthat “all delivered assets, borrowed assets and positions” were not affected by the error. Still, he highlighted that 280,000 COMP tokens worth $80 million could be misrewarded by users.He added that any change to the protocol requires a week-long governance process to get into production.

Although a temporary onePatchwas suggested for the distribution flaw, some users have already exploited the exploit. Over 91,000 COMP tokens worth $27.5 million were minedclaimsin a single transaction after discovery. The wallet owner has since exchanged most of the tokens received for USDC.

The sudden increase in bearish pressure caused COMP to fall below $290. Although the asset has shown signs of recovery in the last few hours, further selling around current price levels could result in significant losses.

Standing on weak support

Transaction history shows that Compound is sitting on a weak demand zone while a significant number of addresses are currently underwater.

Such market dynamics suggest that a break of the $292 support level could lead to a steep correction to $199. Bulls would then need to prevent COMP from breaking $199 as the next key area of ​​interest is at $100.

COMP – Global In/Out of the Money

However, Compound may find it difficult to resume its uptrend. Approximately 22,700 addresses previously purchased nearly 1.9 million COMP at an average price of $382. This represents a large supply wall; The COMP would need a crucial daily candlestick close above to make higher highs.