Compound pauses 4 tokens to avoid price manipulation: Finance Redefined

cointelegraph.com:

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

After the Mango Markets exploit last week, Compound protocol paused the supply of four tokens as lending collateral to protect it against any price manipulation.

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

MakerDAO community voted to approve the custody of $1.6 billion USD Coin (USDC) with the institutional brokerage platform Coinbase Prime.

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

Decentralized lending protocol Compound has paused the supply of four tokens as lending collateral on its platform, aiming to protect users against potential attacks involving price manipulation, similar to the recent $117 million exploit of Mango Markets, according to a proposal on Compound’s governance forum that was recently passed.

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

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Crypto staking platform Freeway pointed at the failure of one of its cryptocurrency trading strategies, along with market conditions, as the leading reason for halting user withdrawals earlier this week.

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