• An update of the DeFi protocol Percent Finance resulted in a severe technical bug.
  • The team seeks assistance from the issuers of the locked coins.
  • The native token of the project drops like a stone. 

Users of Percent Finance, a newly born community-owned fork of Compound Finance protocol, lost access to their over $1 million funds. 

According to the Percent Finance team's official blog post, a technical bug in the programming code of the smart contracts rendered 446,000 USDC, 28 WBTC, and 313 ETH unavailable. It means that users cannot supply, borrow, repay, or withdraw their coins over $1 million at the current market prices. About 50% of that amount belongs to community mod team wallets.

The team of the project contacted Wrapped BTC, Circle Play, and Coinbase, asking for help to release the frozen funds and compensate users. The affected users are invited to contact the community moderator via direct messages of a dedicated Discord channel. 

What happened to Percent Finance

Percent Finance is a decentralized protocol that came to life in September 2020 as a fork of a popular DeFi lending protocol, Compound Finance. The project positions itself as a decentralized money market that offers users access to permissionless lending and borrowing and aims to create fair and unmanipulated markets. 

On November 5, the project team announced that some of their markets experienced problems after the interest rate model update.

Due to an error in the interest rate model update, which we conducted earlier today, the USDC, WBTC, and ETH markets are frozen. You cannot supply, borrow, repay, or withdraw from them at the moment.

As the team further explained, the frozen markets use an older style of CToken copied from Compound protocol as part of the fork. The error occurred when old-style tokens were updated to use a new style interest rate model, which is not compatible with them. As a result, CToken failed when trying to accrue interest.

The problem is severe because the error cannot be reversed. 

While other markets remain operational, the project asks users to repay any outstanding loans, withdraw their money, and refrain from borrowing in any markets. The developers reached out to Circle/Coinbase and BitGo to help release those funds, but frozen ETH may be lost forever.

Unfortunately, it seems the locked ETH may be irretrievable, but we are currently working on potential scenarios to make affected users whole.

PTC got rekt

PTC, the native token of Percent Finance, shed nearly 90% of its value in a matter of hours after the team confirmed the issue. According to CoinGeko data, PCT started the sell-off on November 4 from $0.14 and hit the low of $0.013. At the time of writing, the token is changing hands at $0.014.  

PTC price chart

Currently, the token ranks as 1474, with a current market capitalization of $123,000 and an average daily trading volume of $43,000. The token reached its historical high at $27.9 on September 17 and lost nearly 100% of its value since that time.

PTC sell-off is exacerbated by the bearish sentiments dominating the DeFi industry. On October 30, the leading DeFi-tokens hit new lows amid the collapsing trading activity.


Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.

Recommended content


Recommended Content

Editors’ Picks

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin Price Forecast: Analysts anticipate increased volatility as the US presidential election looms

Bitcoin price teased its all-time high of $73,777 last week but declined to trade below $69,000 on Monday. Analysts suggest that market volatility is expected to rise as the US presidential election approaches.

More Bitcoin News
Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin poised for double-digit decline after breaking ascending trendline

Litecoin breaks and closes below an ascending trendline, signaling a change in market structure. On-chain metrics paint a bearish picture, as LTC’s dormant wallets are active, and the NPL indicator shows a negative spike.

More Litecoin News
Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC, ETH and XRP decline ahead of US elections

Bitcoin (BTC), Ethereum (ETH), and Ripple (XRP) all faced resistance at crucial levels ahead of the US Elections, leading to a price decline. As of Monday, they neared key support levels, and a firm close below these marks could signal further declines.

More Cryptocurrencies News
21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares files S-1 for XRP ETF amid ongoing tension between Ripple and SEC

21Shares filed an S-1 registration with the Securities and Exchange Commission (SEC) on Friday for an XRP exchange-traded fund (ETF). While the chance of approval is slim with the current SEC administration, the landscape could change after the upcoming elections.

More Cryptocurrencies News
Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin: New all-time high at $78,900 looks feasible

Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.

Read full analysis
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

BTC

ETH

XRP