Zeppelin released audit findings on Compound

Smart contract security firm Zeppelin released it's audit findings on Compound, one of the largest DeFi lending platforms with over $40 million in loans outstanding. The report finds a vulnerability allowing a borrower to take out a small short-term loan without paying any interest, and scale that up to resupply the borrowed assets to receive interest. Further, there is a component of centralization as a few administrators determine parameters such as interest rate model, types of collateral etc. which could lead freezing markets, censoring transactions or stealing assets from the system. The Compound team has released plans to decentralize over time in order to mitigate this risk.