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DeFi protocol Compounder.Finance rug pulls to the tune of $10.8m

Updated: Jul 25, 2024
Published: Dec 3, 2020
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Rug pull

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Tempers flared yesterday as yet another DeFi protocol scammed investors and disappeared with $10.8m worth of crypto. One investor in particular who has lost $1m has vowed revenge and dedicated $100,000 in an effort to find the culprits. The total breakdown of the stolen assets can be found here.

Automated farming protocol

Compounder.Finance described itself as an ‘automated farming protocol aimed at investing in and taking advantage of the best profit making protocols in DeFi’. In a November AMA session Marketing and Community lead ‘Mr Shammy’ underlined the organisation’s awareness of and resistance to rug pulls. When asked about building trust in the community and resistance to rug pulls Mr Shammy replied:

‘Absolutely. So this is the number one focus right now, as money will come where the trust is vivid and clear. As discussed earlier, what we can’t change is to stay anon due to local financial product restrictions. What we can do is take as many steps as possible to ensure that people can TRUST our protocol.’

Further blow

In a further blow to investors the project was recently independently audited by Solidity.Finance who describe themselves as providing ‘Smart contract auditing and development services’. The company which have over $50m in on chain value provide ‘affordable yet intensive audits of smart contracts’. The internal trapdoor responsible was actually highlighted as an area of concern in the audit which stated ‘the treasury contract and updating of strategy pools are both under control of the development team’ however the final report claimed the protocol was safe from ‘outside’ interference.

Feelings continue to run high with Solidity.Finance reporting death threats as investors look for answers. Sentiment was reflected in the price of Compound.Finance native token CP3R when it hit rock bottom as news came out.

 

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