Decentralized lending protocol Compound Finance passed a proposal to impose loan limits and introduce new borrowing caps to lower risk on its platform.
“Setting borrow caps helps avoid high-risk attack vectors while sacrificing little capital efficiency and allowing for a threshold of organic borrow demand,” the proposal read.
The voting concluded on Monday and it is in the queue for execution at press time.
Compound’s action comes after an alleged exploit attempt on Aave – a rival lending platform – brought scrutiny to any potential vulnerabilities in decentralized finance (DeFi) protocols’ lending mechanism.
Eisenberg became known for his self-described “highly profitable trading strategy” exploiting a loophole on Solana-based Mango Markets, draining $114 million from the protocol last month.
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