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blockful.eth
@blockful_io
Risk analysis and mechanism design to secure governance | @anticapture
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Tensions in @Compound_xyz governance reached a peak this Friday. Humpy, a well-known DAO attacker, has been putting pressure on Compound governance through Ugur Mersin. Ugur works at API3, a company that has a commercial relationship with Humpy through its dCOMP product. Humpy has been using dCOMP to post his $COMP as collateral and, potentially, increase his voting power in Compound. Today, he is the DAO's largest individual $COMP holder. Ugur/Humpy have already managed to block a proposal to renew Compound's Security Service Providers. Now, they've submitted an on-chain proposal that, among other things, would allow governance to cancel transactions from the group responsible for managing the DAO's treasury (TMC). This would let Humpy block that group's transactions. While the forum and governance are open to criticism, the strategy of spamming forums and disrupting the DAO's operations is a pattern seen in Humpy's past attacks on Sushi, Balancer, and others. Compound has a multisig capable of canceling malicious proposals, but if it has to use that power to stop Ugur/Humpy's proposals, it could put even more strain on its governance. We're glad to have contributed to the Compound, not only by identifying the relationship between Ugur/API3 and Humpy's use of his voting power to push his agenda through governance, but also by showing how dCOMP has been key to increasing his influence in Compound. If you'd like to learn more, we recommend reading our research about Humpy, dCOMP and Compound.
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