TechFlow News, October 2 — According to CoinDesk, a bug in Compound's code led to the incorrect distribution of COMP tokens, which are intended for long-term liquidity mining rewards. Compound’s Twitter account later acknowledged the bug, stating that no users’ funds were at risk. The bug affected only Compound’s Comptroller contract, the smart contract responsible for distributing liquidity mining rewards over time. After the $80 million incident, Compound founder Leshner described it as creating a "moral dilemma" for DeFi users, as nearly all Comptroller contracts have been drained, with 280,000 COMP tokens erroneously distributed to users.
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