Compound Pauses 4 Tokens to Avoid Price Manipulation: Finance Redefined

The last week of October turned bearish for the DeFi market despite the series of hacks, as the majority of DeFi protocols saw gains bullish weeklies.

Newsletter

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) news – a newsletter designed to bring you significant developments over the past week.

After the Mango Markets exploit last week, the Compound Protocol suspended the provision of four tokens as loan collateral to protect against price manipulation.

Crypto staking protocol Freeway said one of its trading strategies “appears to have failed,” forcing the company to halt services earlier this week. October continues to be dominated by DeFi hacks as another DeFi lockdown protocol, Team Finance, lost $14.5 million on contract migration, despite being cleared for audit.

The MakerDAO community has voted to approve the custody of $1.6 billion worth of coins (USDC) with the institutional brokerage platform Coinbase Prime.

The top 100 DeFi tokens showed bullish momentum after nearly three weeks of bears-dominated price performance. The majority of tokens traded in the green on the weekly charts, with several posting double-digit gains.

After Mango Markets exploit, Compound suspends 4 tokens to protect against price manipulation

Decentralized lending protocol Compound has suspended the provision of four tokens as loan collateral on its platform, in an effort to protect users from potential attacks involving price manipulation, similar to the recent exploit of $117 million from Mango Markets, according to a recently adopted Compound forum governance proposal.

With the pause, users will not be able to deposit YFI (YFI) from Yearn.finance, ZRX from 0x, Basic Attention Token (BAT) and Maker's MKR (MKR) as collateral to take out loans.