Compound’s cETH market is temporarily down

Compound's cETH market is temporarily down

Decentralized lending platform Compound faced a code error in its management proposal to update its price streams.

The code error “temporarily freezes” the Compound ETH (cETH) market, resulting in the rollback of cETH transactions. Compound Labs has announced that the assets are not at risk, although the preliminary three are not working.

Compound Labs, dated Aug. 31 in the announcement stated that the code error was due to Proposition 117: Compound Oracle Update v3. The proposal was implemented a few hours before the error to update the oracle contracts in the Compound protocol and to use V3 instead of Uniswap V2 in price streams.

After the cETH market freeze, Compound Labs announced that they are trying to return to their previous price streams with Offer 119: Oracle Update. Although the new proposal was created less than an hour after the implementation of 117, it must go through a seven-day governance process before it can be implemented.

To Michael Lewellen, architect of security solutions at OpenZeppelin by, the script error was caused by the command “getUnderlyingPrice (get the price of the child entity)”. When the command does not update the price of the cETH tokens, it leads to a retraction of the request.

Lewellen also confirmed that the assets are not at risk.

“The main issue here is that the cETH markets are experiencing temporary denial of service, which will be resolved with the new governance proposal. No funds are currently at risk. Other cToken markets in Compound V2 and V3 will remain active.”

Lewellen, on the other hand, warned that those who bought cETH by depositing ETH for a loan position could be instantly liquidated if the ETH price drops significantly until the correction offer is applied.

Robert Leshner, CEO of Compound Labs, announced that users will be able to pay off all their debts and deposit collateral to avoid liquidation.

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