How Compound Recovered $25 Million After Governance Attack – DL News

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DG, Tim here.

Here’s what caught my attention in DeFi recently:

• Compound DAO reaches truce with its attacker.
• Cardano launches its Chang hard fork.
• MakerDAO’s rebranding is just weeks away.

The compound resolves the attack

Compound DAO has reached a truce with the group of filibustering DeFi players who seized control of $25 million worth of COMP tokens on Sunday.

The group, called the Goldenboys, used a DAO vote to award themselves 499,000 COMP tokens from the Compound DAO treasury.

After a tense 48 hours, Goldenboys pseudonymous member Humpy returned the tokens.

In exchange, Compound protocol growth lead Bryan Colligan proposed that the protocol begin sharing fees with COMP token holders.

He detailed the plan in a job on the Compound governance forum.

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“I fully endorse this message,” Humpy said. said in response.

The compound is managed through a DAO, or decentralized autonomous organization.

This means that holders of the protocol’s COMP token govern the protocol by voting on proposed changes, as well as uses of the DAO’s $96 million treasury.

Many feared that if Compound failed to reach an agreement with the Goldenboys, the group could use its governing power to impose changes that would benefit itself at the expense of everyone else.

The compounds hold $2.3 billion value of user deposits.

This isn’t the first time Humpy has disrupted DAO governance.

In 2022, Humpy accepted a so-called peace treaty with decentralized exchange Balancer after attempting to take control of the protocol.

Cardano’s Big Upgrade

Cardano’s Chang hard fork has finally begun.

Network stake pool operators are upgrading their nodes to new software. The hard fork will occur once at least 70% of all operators have completed the upgrade.

At that point, Cardano will enter his so-called Voltaire era.

Voltaire will transfer part of the control of the Cardano blockchain to its community.

ADA token holders will receive governance rights and will be able to propose and vote on changes to the blockchain.

Cardano’s development since its inception in 2017 has been led by the Cardano Foundation, EMURGO, and Input Output Global.

EMURGO is the official commercial arm of Cardano and Input Output Global is Hoskinson’s blockchain development company.

So far, 38% of all operators are using the new software, according to data from the Cardano PoolTool staking dashboard.

MakerDAO’s ‘Endgame’ Is Near

Maker co-founder Rune Christensen’s ambitious and controversial Endgame plan is just weeks away from its multi-stage rollout.

First released in 2022, Endgame will feature a complete rebrand, new tokens, new ways to earn yield, subDAOs, and artificial intelligence.

It’s all designed to help Maker and its stablecoin go mainstream.

Christensen said the goal is to increase DAI’s supply to “100 billion and up,” slightly less than the $114 billion of stablecoin Tether.

Investors appear to like the plan.

MakerDAO’s governance token, MKR, has outperformed this year, increasing by more than 60%, while the value of the entire crypto ecosystem is up 34%.

Maker is a protocol suite centered around the DAI stablecoin.

Users can deposit volatile crypto assets like Ethereum into Maker and receive DAI in return.

Maker’s Spark protocol offers users 7% per annum on DAI deposits.

Data of the week

Coinbase protocol specialist Viktor Bunin analyzes Ethereum vs Solana trading numbers.

He found that trading on Solana is more capital efficient, facilitating higher trading volume per dollar locked on decentralized exchanges than on Ethereum.

But there’s a caveat: a large portion of Solana’s trading volume involves fraudulent tokens.

This Week in DeFi Governance

VOTE: Stargate to Add Sei Network to Its Crypto Bridge

PROPOSAL: Jupiter Aggregator to Vote on 30% Reduction in JUP Token Supply

VOTE: CoW DAO to Extend Revenue Model Test Period

Article of the week

Crypto Twitter reminds us that with a culture of anonymity, you can never really be sure who you’re talking to.

What we are looking at

Crypto bridge Wormhole will distribute over $170 million worth of its W token on August 3.

This is equivalent to 33% of the circulating supply.

Got any DeFi tips? Contact us at tim@dlnews.com.

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