- The compound Finance community is lamenting a takeover by a group called “Golden Boys”
- This is after a proposal to transfer over $24 million worth of COMP to the group was approved
- The Golden Boys faction is suspected to have influenced the voting process
The Compound Finance community is questioning how a proposal to transfer more than $24 million in COMP tokens to the Golden Boys passed despite the community rejecting a similar proposal from the same group a few days ago. According to the proposal, the Golden Boys are seeking funds to create a new way for the community to earn passive income. Some Compound community members have labeled the proposal as a “weird yield farming proposal,” showing that it was unpopular within the community and its passing was probably due to an attack on the protocol’s DAO.
Delegated COMP came from Bybit?
The “TrustSetup for DAO investments into GoldComp” proposal was passed on July 28 with 682,191 votes in favor and 633,636 against. Some community members said that most of the delegated tokens that supported the proposal came from the Bybit exchange, an indication the voting was controlled by the group.
Some random team called “the golden boys” just got a vote passed for $25m(!) out of compound DAO for some weird yield farming proposal.
Delegate tokens for the proposal all come out of ByBit. Seems like a governance attack to me. https://t.co/OjT0Ikh4MY
— drnick (@DrNickA) July 28, 2024
According to the Golden Boys, the new project presents “a new strategy designed to provide COMP holders yields on their COMP tokens.” The proposal, however, disclosed that the GoldComp project would be solely managed by the Golden Boys, something that a section of the Compound community isn’t comfortable with.
The proposal indicates that COMP deposited into GoldComp generates a wrapped token that can be “placed in a 99/1 Balancer pool” to create a passive income. A similar proposal failed to pass a few weeks ago despite it requiring 92,000 Comp tokens.
No Time to Counter the Proposal
To put it into context, the recently passed Golden Boys’ proposal requires an allocation of 499,000 COMP tokens. The transfer of the tokens to Golden Boys is expected to happen by July 30, giving the community no time to present a counter-proposal.
The development comes two weeks after Compound fell victim to a DNS attack that affected multiple DeFi protocols.
With the Golden Boys proposal passed and funds on the way to the group, it’s to be seen whether the group will develop the new feature or the proposal is another subtle way to siphon funds from the protocol.
