Compound reduces administrative privileges in new upgrade

After a series of audits last quarter that revealed centralization risk in Compound, the lending protocol has taken steps to remove or alter some of the administrative privileges. Included in the upgrade is a 2-day timelock after an upgrade, a Pause Guardian that halts the mint, seize, borrow, transfer functions, and other smaller changes that are being reviewed by the community as well as formally audited.

Why this matters

• Compound is currently the second-largest DeFi application with over $113 million of $ETH locked and nearly $40 million in loans outstanding, given its integral nature, any attack vector represents a potentially existential threat to the ecosystem
• The V2.2 upgrade represents a gradual shift towards decentralization that alleviates some of these risks