Compound Finance Faces Governance Attack Allegations Over Proposal 289 Granting 499,000 COMP Worth $25 Million

Jul 28, 2024, 09:44 PM

Compound Finance, a decentralized finance (DeFi) protocol, is facing allegations of a governance attack following the approval of a controversial proposal. The proposal, identified as proposal 289, grants 499,000 COMP tokens, valued at approximately $25 million, to the goldCOMP treasury controlled by a group referred to as the 'Golden Boys.' This move has sparked significant concern within the community, with critics questioning whether this is a poorly communicated attempt to generate yield from idle COMP tokens or a deliberate governance attack. The situation has led to widespread debate and uncertainty regarding the future governance and security of Compound Finance.