Author: Omer, Founder of Chaos Labs; Translation: Xiaozou from Golden Finance

A proposal to allocate 500,000 COMP tokens ($25 million at current prices) to the Goldenboys treasury has been approved. What impact will this have?

Best case scenario: a poorly communicated radical proposal to generate income from idle COMP assets. Worst case scenario: a governance attack staged in full view of the public. Let’s look at it in detail.

The suspicious COMP delegations from April 29 to May 6 are as follows:

OZ identified delegations from Bybit hot wallets: Goldenboys may not be associated with these accounts, but the timing is so coincidental that it is suspicious. These accounts plus the proposer control 325,333 COMP, just 74,667 less than the quorum.

May 6th — Goldenboys plans to invest 5% of Compound Labs funds into the goldCOMP vault:

Goldenboy leader Humpy proposed to invest 92,000 COMP into their goldCOMP vault for a period of 1 year and transfer these tokens to the Golden Boys multi-signature wallet.

The community rejected the proposal, citing a lack of assurances about future multi-sig activity and concerns about large amounts of treasury funds being transferred without proper safeguards.

May 10th - Humpy responds:

Humpy addressed community feedback as follows: acknowledged criticism regarding lack of prior discussion and cancelled Proposal 247; provided details on GOLD multi-signature; created a new proposal with a “Trust Setup”.

July 19th — “Trust Setup” for GoldComp’s DAO investment:

In another proposal, Hump “addressed” DAO-related concerns and deployed a “Trust Setup” contract designed to alleviate multi-sig issues.

Trust can perform several operations, including the invest() operation.

July 28th — Retry of previous proposal, requesting 5x (~$25 million) more COMP tokens:

Undeterred, Humpy made another proposal — this time, however, he asked for 5x more COMP tokens, which is about $25 million at current market prices. This proposal passed!

The main lesson is clear: if the potential reward outweighs the development cost, someone will try it. The only variable is the time frame. We will continue to monitor developments.