The update has bricked the compound CETH market; there will be a 7-day wait on the vote to fix it.

A glitch in the code of a recently proposed governance change to Compound's price feeds has caused the decentralized lending platform significant problems

The Compound ETH (cETH) market has been "temporarily halted" due to the coding issue, which has resulted in cETH transactions rolling back, however Compound Labs has said that "funds are not immediately at risk," despite the front end being down.

The Compound protocol oracle contracts were updated a couple of hours ago to a new version that uses Uniswap V3 instead of V2 for price feeds, and Compound Labs confirmed on August 31 that the faulty code originated from Proposal 117: Compound Oracle Upgrade v3.

Following the temporary freeze of the cETH market, Compound Labs announced its intention to restore the prior price feed via Proposal 119: Oracle Update.

Less than an hour after Proposal 117 was implemented, a fresh proposal was drafted; however, it must 

now go through a seven-day governance procedure before going into effect.

According to a recent post by OpenZeppelin's Security Solutions Architect Michael Lewellen, the flaw originated in the "getUnderlyingPrice" function, which failed to refresh the cost of cETH tokens before returning empty bytes and reverting the call.

Lewellen further reassured everyone that no money is in jeopardy:

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According to the new governance proposal, the current problem is a temporary denial of service for the cETH market.

To now, no money has been jeopardized. All other cToken marketplaces on Compound V2 and all of V3 are still operational.

On the other hand, Lewellen cautioned, "any customers that deposited ETH and acquired cETH for starting borrow positions must be informed that they might get promptly liquidated whenever the fix proposal occurs if by that time the price of ETH has plummeted sufficiently."

Robert Leshner, CEO of Compound Labs, countered that debtors still had a chance to avoid liquidation by making payments or providing collateral.

While the oracle contract has been reviewed by three different smart contract auditing businesses, including OpenZeppelin and ChainSecurity, Compound Labs stated that the code error still occurred.

All 696,665 votes from 245 unique wallet addresses were in support of Proposal 117, thus it didn't seem like there was any debate on the price feed improvement.

The majority of votes (306,146) were cast in favor of the plan by clients of crypto investment firm Polychain Capital.

DeFi Llama ranks Compound as the third largest decentralized lending network, with a total locked value of $2.67 billion (TVL).

The COMP coin, which represents Compound, is presently trading at $48.27, seemingly unaffected by the news.