Congratulations everyone!
What a great community! Thanks everyone!!
Congratulations everyone!
What a great community! Thanks everyone!!
Is this TRiLeZ from Tribot?
Iāve been spotted
Good to see talent in the crypto space!
LINK:
For reference: COMP
Something very important to consider about link is the concentrated holdings. 45% of link is held in unverified contracts (I think by link team). This is $10+ B which would essentially allow the link team to take all of Compound held funds. I think limiting the amount of collateral Link in the protocol would be a good idea.
I am not concerned but I appreciate you bringing up the point. It would be great if we had supply caps.
A related scenario to consider is if a hacker gained control of the Chainlink project wallets containing this $10B worth of LINK. Today that hacker might be able to liquidate $100M via DEXes. But Compound offers a much wider exit ramp: by depositing the $10B LINK you could āborrowā $5B of liquid assets.
So allowing unlimited collateral means the Compound protocol inherits the security quality of the Chainlink treasury. About all you can say about that is āseems good so farā. But, by creating the exit route for funds, we would increase the incentive to hack their wallets by 50x or more.
At a minimum for our due diligence, we should know how many individual people would need to be compromised to allow this to occur.
Here are a few ideas for mitigating the risk of a collateral exploit (this applies to any vulnerable collateral, not just LINK, especially those with centralized minting such as WBTC):