Compound Suspended The cETH Market After A Bug

cETH Market Suspended After Bug
Compound Finance Glitch

Following a fault in a recent proposal that produced a problem with the price feed, Compound Labs has stated that it has paused its Compound Ether (cETH) market. Even though three auditors had examined the contract, Compound noted that it contained a mistake that led to the reversal of transactions for ETH suppliers and borrowers.

cETH Market Suspended After Bug

GFX Labs put out Proposal 117 on behalf of Chainlink, which centers on creating a new price oracle. It upgraded the anchor market from Uniswap v2 to v3 and requested an upgrade of the protocol's oracle contract to version 3. With no votes against it, it gets approved without dissent.

The team announced that until proposal 119 takes effect, the cETH market would be frozen. The latter restores the old price feed. Compound Labs states that although it will take seven days for this to effect, funds are not at risk immediately.

Compound Finance Glitch

On August 31, they said that users need to continue to be able to provide collateral, including Ether. Any interface problems need to resolve soon. Michael Lewellen, Architect for OpenZeppelin Security Solutions, stated that the Underlying Price function caused the problem. He said that because the value of cETH tokens did not update, it had reverted and returned empty bytes.

It is not the first time that Compound Finance has experienced a glitch. A "one-letter software fault" in October 2021 led to the unintentional payment of $90 million. No money was at risk because of the occurrence.

Disclaimer: The views and opinions expressed in this article are for informational purposes only and do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Compound cETH GFX Labs

Compound Suspended The cETH Market After A Bug

Usha Yadav

Usha is a diehard crypto enthusiast and has been actively writing on different facets of the blockchain and crypto world. She has authored many research articles on cryptocurrency and aims to provide informational and quality content to readers. She firmly believes that crypto has a great potential to redefine the world of finance and blockchain.