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Wednesday, July 31, 2024
A whale’s raid on Compound Finance.
On July 28th, Compound Finance found itself in the crosshairs of a daring governance proposal, with critics crying foul play.
Proposal 289, narrowly passed by a margin of just 682,191 to 633,636 votes, saw a jaw-dropping 499,000 COMP tokens, worth roughly $24 million, whisked away from Compound's treasury into the "Golden Boys" yield-bearing goldCOMP vault.
While technically within the bounds of Compound's DAO rules, this contentious event has ignited fiery debate and cast a spotlight on the vulnerabilities of decentralized governance systems.
Enter Humpy, the enigmatic DeFi whale behind this bold gambit.
No stranger to controversial moves, Humpy has defended Proposal 289 as a genuine attempt to generate extra yield for COMP token holders.
But many in the Compound community see it as a calculated power grab that threatens the protocol's decentralized spirit.
A whale is playing a high-stakes game of DeFi chess and this is not Humpy’s first dance and it won’t be his last.
Can true decentralization thrive when the ambitions of powerful token holders loom large?
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