After many upvotes, decentralized lending protocol Compound decided to pause the supply of four tokens used as collateral lending assets on the platform.

Due to its low liquidity in the market, the Compound protocol recently submitted a proposal to the community to halt four tokens, including cZRX, cBAT, cMKR, and cYFI.

According to the Proposal, if these tokens are not paused, an Oracle manipulation-based attack similar to the one that cost Mango Markets millions of dollars in the Compound protocol is much less likely to occur due to the lower liquidity of these tokens. .

Overall, this proposal has received overwhelming support from the community, with approximately 554,126 votes in favor, representing 99.99% of the vote. Only one voter canceled the proposal by voting against it.

The composite protocol has now complied with the proposal and stopped these tokens. This means that such tokens will not be available for users to deposit and/or borrow to protect the protocol from market manipulation attacks.

Compound founder Robert Leshner, who voted in favor of the proposal, said in an Unchained podcast that Mango’s exploits served as a wake-up call for lending protocols. Therefore, loan protocols should take it into account to review their risk parameters.

“Each protocol has to address the risk parameters assuming that some black hat hacker will try to exploit it. It is a huge wake up call for every DeFi project on every blockchain to take this as a wake up call,” Leshner said.

The Mango Markets hack is indeed a warning for protocols in the DeFi ecosystem to take note. The hacker stole over $100 million from the trading and lending platform after manipulating the price of Mango Market’s native MANGO token through an Oracle price manipulation attack.

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