Compound’s Price Feed Update Goes Haywire: What Happened and What’s Next?

Yet Another Code Bug: Who Invited This Drama?

In what can only be described as a classic case of oopsie daisy, Compound’s latest governance proposal has effectively put the kibosh on its Ether lending market. Thanks to a glitch in Proposal 117, dubbed the Compound Oracle Upgrade v3, the price feeds have gone belly-up, leading to a temporary freeze in cETH transactions. And all this chaos just hours after implementation? Talk about bad timing!

The Technical Breakdown: What’s Going Wrong?

So what’s causing all this hullabaloo? It turns out the culprit was hiding in the code, specifically in the getUnderlyingPrice function. When it tried to fetch the price of cETH tokens, it threw a tantrum and returned empty bytes instead. Essentially, it was like trying to grab a snack from an empty fridge—nothing there!

What Happens Next?

To mitigate this disaster, Compound Labs hastily proposed Proposal 119 to restore the previous price feed. However, this isn’t some quick fix; it’s got to endure a seven-day governance process before users can breathe easy again.

Are We in Hot Water?

In a valiant attempt to quell the fears of anxious users, both Compound Labs and security savant Michael Lewellen from OpenZeppelin assured the world that funds are not immediately at risk. The primary issue is merely a temporary denial of service for the cETH market, folks.

The Liquidation Warning: A Specter Lurks

However, here’s where it gets spicy: any users who deposited ETH to obtain cETH for borrow options might face instant liquidation if the price of ETH takes a nosedive before the problem is fixed.

Audit Fail: How Did This Even Happen?

Incredibly, the oracle contract had been circled by three auditors, including reputable names like OpenZeppelin. But as they say, even the best-laid plans of mice and men often go awry.

The Community Reacts

Amazingly, Proposal 117 wasn’t controversial at all, garnering complete support with 696,665 votes from 245 wallets. Even Polychain Capital lent its hefty backing.

The Bigger Picture

Despite the chaos, Compound is still holding strong as the third-largest decentralized lending platform, with a hefty $2.67 billion total value locked. Meanwhile, COMP tokens are managing to stay afloat, trading at around $48.27, leaving investors somewhat hopeful.