Compound

Donald Trump

Elon Musk

Curve Finance founder Michael Egorov has addressed concerns about potential governance attacks, following a controversial Compound Finance hack. The vulnerability of governance systems are put to question after a small group of investors allegedly accumulated enough tokens to push through a contentious proposal on the Compound platform. 
Egorov’s response sheds light on the robustness of Curve’s governance model and offers insights into how different DeFi protocols are tackling the challenge of maintaining decentralized decision-making while guarding against potential manipulation. 
<h2 id="curve-finance-s-governance-model">Curve Finance’s Governance Model</h2> 
The recent governance controversy at Compound Finance has sparked discussions across the <a href="https://coingape.com/glossary/defi-decentralized-finance/" target="_blank" rel="noopener">decentralized finance</a> (DeFi) community about the vulnerability of protocols to potential attacks through token accumulation. In response to these concerns, Curve Finance founder Michael Egorov has addressed the possibility of a similar scenario occurring on the Curve platform. 
Egorov emphasized that Curve’s governance model, based on ve-tokenomics, was specifically designed to mitigate such risks. Unlike simpler governance systems where voting power is directly proportional to <a href="https://coingape.com/glossary/token/" target="_blank" rel="noopener">token</a> holdings, Curve requires users to lock their tokens for an extended period of four years to participate in governance decisions. This long-term commitment acts as a deterrent against rapid token accumulation for malicious purposes. 
Furthermore, Egorov pointed out that the current threshold for unilaterally reaching quorum on Curve is approximately 200 million CRV tokens, a substantial amount that would be challenging to acquire without drawing attention. The active nature of Curve’s governance, which often sees multiple proposals under consideration simultaneously, also serves as a safeguard. 
The Curve founder’s statements come at a time when the DeFi sector is grappling with questions about the balance between decentralization and security in governance structures. The incident at Compound Finance hack, where a small group reportedly acquired enough tokens to push through a contentious proposal, has heightened awareness of these issues across the industry. 
Also Read: <a href="https://coingape.com/ethereum-etf-launch-attracts-2-2-billion-inflows-but-heres-the-catch/" target="_blank" rel="noopener">Ethereum ETF Launch Attracts $2.2 Billion Inflows, But Here’s the Catch</a> 
<h2 id="the-compound-finance-hack">The Compound Finance Hack</h2> 
The incident at Compound Finance allegedly involves a major token holder known as “Humpy,” who used substantial holdings to pass a controversial governance proposal. This proposal redirected 499,000 COMP tokens, valued at approximately $25 million, from the Compound treasury to a yield-bearing vault controlled by Humpy and a group called the “Golden Boys.” The proposal passed narrowly with 51% approval, receiving 682,191 votes in favor and 633,636 against. 
<img decoding="async" class="aligncenter wp-image-209971" src="https://coingape.com/wp-content/uploads/2024/07/Screenshot-798.png" alt="" width="698" height="206" srcset="https://coingape.com/wp-content/uploads/2024/07/Screenshot-798.png 1366w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-798-300x89.png 300w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-798-1224x361.png 1224w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-798-768x227.png 768w, https://coingape.com/wp-content/uploads/2024/07/Screenshot-798-150x44.png 150w" sizes="(max-width: 698px) 100vw, 698px"> 
It claimed to offer additional yield on COMP tokens through a new goldCOMP vault, where users could deposit the tokens to receive goldCOMP tokens. These could then be used in a Balancer pool to create a passive income stream for long-term COMP holders. 
Also Read: <a href="https://coingape.com/elon-musk-accuses-democrats-of-importing-voters-endorses-donald-trump/" target="_blank" rel="noopener">Elon Musk Accuses Democrats Of ‘Importing Voters’, Endorses Donald Trump</a> 
The post <a href="https://coingape.com/compound-finance-hack-unlikely-on-curve-finance-says-founder/">Compound Finance Hack Unlikely on Curve Finance, Says Founder</a> appeared first on <a href="https://coingape.com">CoinGape</a>.

Compound Finance Hack Unlikely on Curve Finance, Says Founder

Obsah

Coingape News Media

Ďalšie články zverejnené 29. 7. 2024

Crypto Related Stocks Like Coinbase, Marathon Digital And Others Surge After Trump's Pro-Bitcoin ...

Compound Finance Passes $24M Proposal Amid DAO Dispute

Coinbase Deal Likely Behind US Govt’s $2B BTC Transfer: Bloomberg Analyst

Ex-SwissOne Capital’s Co-Founder Antony Turner is the CEO of BlockDAG! - BDAG on Track to Break i...

Polkadot’s bearish week: Will THESE new integrations spark a turnaround?

Bitcoin Leads a Significant Surge in the Cryptocurrency Market

Pripojte sa k nášmu bezplatnému bulletinu a získajte denné aktualizácie kryptomien!