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Following a code error, the cETH market is at a standstill for a week on Compound

Compound, one of the largest decentralized lending protocols, has been forced to shut down its Compound Ether (cETH) market. And for good reason, a code error that slipped in during a protocol update. The issue should persist for at least a week given Compound’s governance system.

Compound shuts down cETH

Decentralized lending platform Compound, currently the third largest in the market by total value locked (TVL), suffered a code error following theimplementation of a governance proposal (Compound Oracle Upgrade v3)

aiming to update its price feeds via Uniswap V3.

Despite several audits carried out by 3 different people, the error, which went unnoticed during the checks, leads to theautomatic cancellation of transactions of anyone wishing to lend or borrow Compound Ether (cETH). The latter is obtained by depositing Ether (ETH) as collateral with the platform.

The error, which also caused a temporary failure on the front-end part of the Compound site, will however have to remain for some time. Indeed, the latter should be corrected following proposal 119 aiming to return to the old price streams, but according to Compound’s governance policy, a week is necessary for the implementation of any new proposal.

According to OpenZeppelin, the error comes from the “getUnderlyingPrice” function which remains vacant and would therefore return a null responsethus preventing any such transaction.

Michael Lewellenan employee at OpenZeppelin, however, warned that liquidations were possible in particular in the event of a drop in the price of Ether between now and the implementation of the new proposal. However, even following the revealed bug, users can continue to deposit funds as collateral to secure their positionsaid the CEO of Compound.

According the discussion thread from the initial proposal to upgrade to UAV3, Compound still considering switching to the latter once the code problem is solved for the cETH.

The news had no impact on the COMP token, which is currently trading at $48.30a decrease of 0.6% over 24 hours.

👉 To read – What is decentralized finance?

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