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Title: Compound exploit allows users to 4x their capital—using their borrowed amounts Post by: bbc.reporter on July 07, 2020, 01:02:20 AM This appears to be a DAO 2.0. A smart contract that is functioning as it was programmed to be, however, coded with a loophole where someone can use to cheat the program.
However, is it cheating if it is functioning in the purpose it was programmed to? The question of the DAO. https://i.ibb.co/c3fnFMg/6-DF34038-9-BE4-424-A-8265-B097-CF40-B94-A.jpg Robert Leshner, founder of Compound An exploit on Compound is allowing users to leverage their initial capital multifold, creating more Compound DAI than real DAI, and a situation that some are terming impossible. This is not a security lapse or bug in the Compound protocol, but a sneaky loophole that makes borrowing against borrowed collateral possible. DeversiFi COO Daniel Yanev noted on a tweet Friday that on-chain DAI was just 108 million, compared to Compound DAI that’s more than 3x the value: Thread commentator @degenspartan explained the situation arises as a user immediately deposits the DAI they borrow “which becomes collateral so [they] can borrow more DAI,” which in turn, can be further pooled to gain collateral on. Source https://cryptoslate.com/this-compound-exploit-allows-users-to-4x-their-initial-capital-using-their-borrowed-amounts/ |
