Compound platform accidentally paid out $90 million in tokens to users and is asking for a refund
Cryptocurrency platform Compound mistakenly paid out $90 million worth of tokens to its users, and now it's asking them to pay it all back.
To begin with, let's remind that Compound is an Ethereum-based protocol, which gives an opportunity to lend assets against collateral and receive interest. Note that interest rates are calculated based on supply and demand.
Robert Leshner, the founder of Compound, immediately after the error began urging users to return the funds received as a result of the failure. In doing so, anyone who agrees to voluntarily return tokens will be allowed to keep 10% as a reward for diligent behavior.
However, Leshner threatened to appeal to the US Internal Revenue Service. Such a statement greatly upset investors, causing Compound's value to drop by 13%. After the fall of the token price, Robert Leshner admitted that his tweet was incorrect and stated that he was doing everything he could to help get some of Compound back.
I'm trying to do anything I can to help the community get some of its COMP back, and this was a bone-headed tweet/approach. That's on me.
- Robert Leshner (@rleshner) October 1, 2021
Luckily, the community is much bigger, and smarter, than just me.
I appreciate your ridicule and support.
How many users received Compound tokens by mistake is not yet known. The platform is optimistic amid the experience of DeFi and MISO SushiSwap, which returned $611 million and $3 billion respectively. Admittedly, those two cases involved theft of tokens rather than payouts due to failure.
Source: @rleshner
