Are the Hector DAO Dev's Incomptent or Frauds after $2.7m Stolen?

In a shocking turn of events, Compound Finance, one of DeFi's pioneering lending protocols, has fallen victim to what many are calling a blatant governance attack. The incident has sent shockwaves through the crypto community, raising serious questions about the vulnerabilities of decentralized autonomous organizations (DAOs) and the apparent apathy plaguing some corners of DeFi. ______________ SPONSORS Leviathan News is thrilled to welcome YieldNest as our sponsor this month! This innovative liquid restaking protocol is making waves in the DeFi space with its flagship product, ynETH. By depositing your ETH at YieldNest.com, you can potentially unlock enhanced yields through exposure to a curated basket of Actively Validated Services (AVSs). Don't let your ETH sit idle – dive into the future of yield optimization at Yield Nesttoday. https://app.yieldnest.finance/restake?ref=4ZYhFKdSh5iZMsGQaVygg59bac9Z ---------------------- Today's Guest Socials: https://x.com/bryancolligan ---------------------- Compound is one of the oldest DeFi protocols, has never experienced a hack, was the pioneer of “liquidity mining” and remains today a major lending facility with over $2bn of deposits across multiple networks. The saga unfolded over the past few days, culminating in the passage of Proposal 289 - a controversial measure that allocates a staggering 499,000 COMP tokens (worth approximately $24 million and representing 5% of the total supply) to an LSD-style liquid locker controlled by a group known as the "Golden Boys." Led by a whale investor going by the handle "Humpy," this group managed to amass enough voting power on the open market to force through their proposal, despite vocal objections from key community members and security advisors. What's particularly alarming about this situation is the brazen escalation of the attackers' demands. An initial proposal for 92,000 COMP tokens was spotted and flagged by Compound's security advisor, Michael Lewellen. Despite Lewellen's warnings, the proposal received minimal attention on the DAO forum. After this first attempt failed, Humpy audaciously increased the requested amount by 5.4x in the successful third proposal. The lack of engagement from the broader Compound community is perhaps the most concerning aspect of this debacle. Only 57 addresses participated in the crucial vote, a pitiful showing for a protocol of Compound's size and importance. This apathy extends beyond this single incident - Compound's governance forums have been eerily quiet, with most proposals originating from a single entity, Gauntlet, which is paid to manage the DAO. This governance attack isn't Humpy's first rodeo. The investor has a history of similar behavior, having been involved in contentious governance struggles with other prominent DeFi protocols like Balancer and SushiSwap. These past incidents make the current situation at Compound all the more inexcusable. The implications of this attack are far-reaching. If a single whale investor can so easily sway the governance of a major DeFi protocol, what's to stop similar or even more damaging proposals in the future? The security of user funds could be at risk if this trend continues unchecked. For now, Compound Finance finds itself at a crossroads. The protocol's reputation has taken a significant hit, and rebuilding trust will be an uphill battle. As for the wider DeFi community, this incident should serve as a wake-up call. The promise of decentralized governance can only be realized if participants remain vigilant and engaged. Otherwise, we may see more instances of brazen governance attacks that undermine the very foundations of DeFi.

29 Juli 202442min

It's a tough world out there in crypto. Hacks are happening left and right. All it takes is one transaction to lose it all. Can we do better? Glue thinks we can. Snapshot joins this episode to talk about their new network and how they are building the safest fully on-chain network for all people to use. https://glue.net/ Snapshot: https://x.com/0x_SnapShot

24 Juli 202418min

Term Labs joins to discuss their latest updates

24 Juli 202451min

Sam, Defi Advisoor, Millie, and Colin Platt discuss the biggest news in crypto this week, covering Craig Wright's denial of being Satoshi, WazirX hack, Infrastructure funding, and finally "Sliding Doors" at the end.

18 Juli 20241h 56min

Pope, Colin and DAdvisoor join to talk about the VanEck SOL ETF filing, Blast airdrop and the MegaETH $20M seed investment with its (very) interesting investors like Vitalik, DCF, Cobie and others.

27 Juni 202441min

Lord Pemberton Squigglebop joins the episode today to discuss Ponzu's and their role in crypto. Berachain Faucethttps://bartio.faucet.berachain.com/Yeetit https://yeetit.xyz/

25 Juni 20241h 7min

In this episode of Leviathan News we have on Kaledora from Ostium to talk about the upcoming launch of their Perp dex for commodities and other TradFi products like the SP500.

21 Juni 202458min

The guys join to discuss weekly events - the Kraken and Certik story, $ZRO airdrop by Layer Zero and more. Millie and Pope are on with DAdvisoor this week. Enjoy! Our links: Leviathan News: https://twitter.com/leviathan_news https://www.youtube.com/@Leviathan_News https://t.me/leviathan_news https://leviathannews.substack.com Panel Members of the week: https://x.com/llamaonthebrink https://x.com/web3tokenomics https://x.com/DAdvisoor

21 Juni 20241h 12min