Compound Finance community members have been quite upset over the recent ‘governance attack’ via which a proposal was non-consensually passed. A group of people allegedly purchased tokens from the market to get an additional edge over others and sanction the proposal by voting.
According to data compiled on the Compound Finance website, over 35 addresses voted for the proposal using 682.1k tokens. Meanwhile, 22 addresses were against it and shelled out over 633.6k tokens in the voting process.
Proposal 289 — in its most basic essence — calls for a 5% fund diversion from Compound's treasury [499,000 COMP tokens worth around $24 million] to a yield protocol vault designed by the "Golden Boys" for one year.
Michael Lewellen, a security advisor for Compound Finance, asserted,
“The proposal was not discussed prior in the forums and the delegate did not identify itself to the community prior to the proposal being created. There are additional new delegations that have been made that raise concerns that this is possibly a coordinated governance attack.”
Golden Boys leader ‘Humpy’ defended the proposal by clarifying that the investment will be diverted via a Trust Setup with a “constraint set of actions” that do not foster stealing.
Haseeb Qureshi, Managing Partner at Dragonfly Capital, pointed out on X that this was not Humpy’s first “rodeo.” In 2022, he attacked Balancer along similar lines.
At the time, he used his huge balance of BAL tokens to direct a huge amount of BAL incentives to a pool he controlled. Qureshi questioned,
“This is basically a DAO corporate raid, with a flavor of stripping/tunneling (where the raider strips out assets for personal gain). This is illegal in normal corporate law, but... in DAOs?”
Meanwhile, commenting on the latest series of events, Sushi Swap Head Chef Jared Grey said,
“Feel bad for Compound and the governance attack perpetuated by Humpy.”
COMP’s price outrightly reacted to the community's attack allegations. At press time, the asset was trading around $47, down by 6.4% over the past 24 hours.
