- Compound Labs shared on Twitter about an error they found during a price feed update used by Compound v2 users.
- The update is executed via Proposal 117 which was audited by three independent auditors.
- The error is causing transactions for ETH suppliers and borrowers to revert.
DeFi software company for lending and borrowing cryptocurrency, Compound Labs shared on Twitter about an error they found while executing Proposal 117 to update the price feed used by v2 users.
An hour ago, Proposal 117 was executed, which updated the price feed that Compound v2 uses.
This price feed, while audited by three auditors, contained an error that is causing transactions for ETH suppliers and borrowers to revert.https://t.co/a2DFk7h0ET
— Compound Labs (@compoundfinance) August 30, 2022
The proposal was executed in order to introduce the Compound v3 contract. Compound III is a streamlined rendition of the original protocol to enhance security, user experience, and capital efficiency. The upgrade is revolutionary for borrowers in DeFi as complexity was removed.
While the price feed was audited by three independent auditors, the error is reverting all transactions for ETH suppliers and borrowers.
The tweet further highlighted that the Compound Protocol token, Compound Ether (cETH) is temporarily frozen. To deal with the faulted price feed, Compound Labs has created a new Proposal 119 to revert to the prior price feed. However, this new proposal won’t go into effect until the next 7 days.
Currently, because of the price disparity, the price feed is not loading but Compound Labs is hopeful it will be operational soon.
Moreover, Compound Labs added that all users should be able to add collateral, including Ether collateral.
The tweet drove confused reactions from the users, questioning the work of the auditors, and demanding better quality assurance and product testing moving forward.
The error has however not affected the Chainlink Data Feeds and is a logic error in the newest version of the UniswapAnchorView contract utilized by Compound Labs.