DeFi Developer Error PercentFinance Leads Crypto Assets to Freeze on $1 million

Due to the error of the Defi Percentfinance application developer, форка Compound Finance, turned out to be frozen 446 000 USDC, 28 WBTC и 313 ETH, the total cost of which exceeds $1 million

The Defi Percentfinance platform team wrote on the blog, that “in some money markets there was a problem, which can lead to constant blocking of user assets ". The team froze money markets for USDC, ETH и WBTC.

A total of 446,000 USDCs are frozen, 28 WBTC и 313 ETH, Equivalent approximately $1 million. According to the article on the blog, Half of these assets belongs to the "team from the community" Percentfinance. The withdrawal of money from other markets is open, But the team calls for users not to take loans in any of the Percentfinance markets.

In the discussion of this vulnerability in Discord, Ethereum developer and percentfinance vfat, said, that another developer, who conducted Fork Percentfinance from Compound Finance, “I used old Compound contracts instead of… newer, much the best versions ".

VFAT began updating some of these smart contracts, In particular, regulatory interest rates on loans of platforms. After that, How VFAT completed the changes and unfolded them, He understood, that signatures for old and new contracts are incompatible, Therefore, transactions cannot be signed with them.

"The old and new percentage rates have different signatures for all these important functions", – He said in a Discord chat. “In fact, Token contract is trying to find the function of interest rate, which does not work, Therefore, it fails to fail at each interaction ".

According to VFAT, the Compound team confirmed, What does this mean blocking the contract ". He noted, what else is it too early to talk about the plan to restore assets, Since the developers of the protocol have not yet communicated with Center or BitGo – USDC and WBTC issuers, respectively.

Theoretically, issuers of USDC and WBTC can be blacklisted with blocked assets. After making BitGo and Centre, new tokens of the old owners could overcome the black list, What did Tether do
For a trader, who mistakenly translated 1 Milln USDT to the wrong address.

The press secretary of Centre said, that the company can interfere in the USDC transactions only, If it receives "real, compulsory court order from the Competent Court of the United States, which has the authority over Center ".

As for other restoration efforts, VFAT said, that one proposal at an early stage involves launching new contracts for USDC credit markets. Although 27% a loan is recorded in old contracts, New contracts will allow borrowers to pay the remaining part of their loans, thus get your security and pay creditors $0.73 cent $1. At the same time, there are no opportunities to return the ETH blocked in the contract.

“Regardless of further actions, I take responsibility for the lost assets and I will do everything, what is in my power, To compensate for losses ", – Said VFAT.

Recall, that recently the user was mistakenly sent
AAVE tokens worth $1.1 MLN to the Smart-Contract Token. Now these tokens are blocked and they cannot be returned.