Compound Labs Hack

TOTAL LOST $71.1M
High Other

What happened

Compound's new proposal caused a loss of 237,000 $COMP tokens due to the smart contract issue

Compound's governance Proposal 62 changed the distribution in the Comptroller contract to liquidity suppliers and borrowers from a previous 50:50 split to new governance proposed ratios:

https://compound.finance/governance/proposals/62

However, the Comptroller contract contains a bug, causing some users to receive too much COMP. The Comptroller received tokens for distribution from the Reservoir contract at:

https://etherscan.io/tx/0xe7616779…9f2322

84,000,000 in $COMP tokens are at risk

Approximately 237,000 $COMP tokens are already distributed between different addresses and can be calculated as a loss at the current moment.

The examples of transactions that trigger the bug:

https://etherscan.io/tx/0xc9244e53…2b0001

https://etherscan.io/tx/0xbc246c87…06422a

https://etherscan.io/tx/0xd77300cd…492f94

https://etherscan.io/tx/0xc9244e53…2b0001

https://etherscan.io/tx/0x0fefe4a1…3b45c1

https://etherscan.io/tx/0xf3731f0e…80a973

https://etherscan.io/tx/0xb6d5122a…dab7f2

https://etherscan.io/tx/0xf4bfef16…8a9f45

https://etherscan.io/tx/0xee318650…70bdb1

Comptroller contract:

https://etherscan.io/address/0x3d981921…c9cd3b

Reservoir contract:

https://etherscan.io/address/0x2775b1c7…009e38

List of addresses, which claimed a huge amount of tokens:

https://twitter.com/0xngmi/status/1443442885618278407

Case & protocol details

Classification Borrowing and Lending
Protocol Type Exploit/Other
Affected asset / contract COMP
Official Website compound.finance/
Protocol Twitter/X @compoundfinance

Evidence & learning

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