A bug in a recent update of decentralized finance platform Compound sent users nearly $90-million-worth of cryptocurrency in error, leaving its creator’s CEO begging users to voluntarily send it back.
The glitch is a black eye for cryptocurrency platforms hoping to upend the traditional finance system. DeFi platforms don’t have banks or other middlemen administering funds, instead relying on “smart contracts” struck between users that are governed completely by computer code. Proponents say DeFi is more egalitarian in cutting out traditional firms, often using the mantra “Code is law” to emphasize that computer code, rather than fallible humans, governs the ...
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