The Compound Labs team announced via Twitter on Wednesday that Proposal 117 was executed, which updated the price feed that Compound v2 uses. The team explained that this price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.
Hence, the Compound team said it temporarily froze the cETH market. A new proposal, 119, has been created to revert to the previous price feed; this will take seven days to go into effect, the team added.
Compound is an algorithmic, autonomous interest-rate protocol on the Ethereum blockchain. Compound has grown to become one of the cornerstones of the DeFi industry. As of June 25th, 2020, Compound was the world’s largest DeFi protocol, with more than $500 million worth of cryptoassets being locked and over $900 million being supplied.
COMP is down by more than 4% and is trading at $46.00 at press time.