onchain-story

Seeing a lot of inflammatory takes on the latest Compound finance proposal so here's my view as someone who works day in and day out on this space:

What happened?

This is not a technical governance attack, but rather someone executing a PE-style play based on the rules as they are defined. It might be unsavory, but it is permissible within the rules of the system.

Who's to blame?

1. The governance system is set up naively where large transfers of funds are just as easy to make as small ones. This is an especially tricky balance for lending protocols that need quorum and threshold to be low enough to enable routine risk management. 

2. The delegates did not intervene in what is at the very least a suspicious, if not possibly malicious proposal.