Michael Yegorov, founder and CEO of Curve Finance (CRV), commented on the latest UwU Lend hack, explaining that Curve Finance itself was not used within the incident.
In a Q&A with Cointelegraph, Egorov clarified that “this isn’t a Curve exploit. This was an exploit of a separate undertaking [UwU Lend]”, explaining:
“[…] the hacker, as a part of the cash sport, deposited the CRVs taken from UwU into lend.curve.fi (LlamaLend) and disappeared with the funds, leaving his debt within the system.”
Egorov emphasised measures to forestall future exploits, recommending that UwU Lend “re-examine all contracts and join them to good safety auditors” to hopefully recoup losses.
On the subject: Curve Finance’s mushy liquidation works, however CRV falls 28%
Faux CRV burn advert
Cointelegraph initially reported that Yegorov proposed to burn 10% of CRV tokens, valued at $37 million, to stabilize the token value and supply voters an elevated annual proportion return.
Within the following Q&A with Egorov, he addressed the misinformation that the staff burned 10% of CRV tokens:
“This info was tweeted by a pretend account (impersonator) accompanied by a fraudulent hyperlink. Few journalists didn’t test the info and didn’t publish about it.”
On the subject: Curve founder settles 93% of $10M dangerous debt stemming from liquidation
Compensation of dangerous debt
On June 15, Egorov introduced that he had absolutely paid off the $10 million in dangerous debt attributable to the mushy liquidation attributable to the UwU exploit.
“CRVs posted as collateral for loans have been in all probability 30% of the turnover; half of them have been on Curve, so there was actually dangerous debt. It was already repaid. It did not have an effect on anybody.”
On the subject: Curve Finance’s Michael Egorov says $10 million in dangerous debt has been paid in full
Liquidation danger administration
Requested how Curve Finance plans to handle liquidation dangers in risky markets, Egorov advised Cointelegraph:
“For non-major cryptos (e.g. not BTC or ETH as collateral), a mortgage restrict ought to probably be enforced; the information reveals that Curve-specific markets may be properly parameterized to resist even these circumstances.”
On the subject of arbitration on the chain, Egorov mentioned:
“It appears the trade heavyweights did not fairly know the best way to cope with liquidations; they didn’t try a partial onerous liquidation of my place on Curve. In the long run, I used to be pressured to do it myself.”
Looking forward to tackle the broader implications of liquidation for decentralized finance, Egorov advised creating “open supply liquidation bots” and informing the general public about liquidation.
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