Curve Finance CEO Addresses UwU Lend Hack and Sets Record Straight on Fake CRV Burn News
Summary:
Curve Finance CEO, Michael Egorov, asserts that the recent UwU Lend hack was not an exploit of Curve Finance. Egorov suggests that future hacks can be prevented by re-verification of all contracts and connection to proficient security auditors. He debunked false news of a proposed 10% CRV tokens burn to stabilize the token's price. Egorov also confirmed the full repayment of the $10 million bad debt incurred from the UwU exploit, and outlined strategies for managing liquidation risks and developing open-source liquidation bots in volatile markets.
Curve Finance's creator and chief executive, Michael Egorov, has shared his thoughts on the recent hack of UwU Lend, asserting that Curve Finance wasn't the one compromised. During a Cointelegraph interview, Egorov underlined that the mishap was not a Curve exploit but an attack on a distinct entity, UwU Lend. He further elaborated that the hacker had deposited stolen CRVs from UwU into LlamaLend (lend.curve.fi) before vanishing with the funds and leaving behind a debt in the system. To mitigate such events in the future, Egorov suggests UwU Lend to meticulously reassess all contracts and ally with competent security auditors to possibly recover the losses.
Additionally, there had been erroneous reports that Egorov had recommended a 10% burn off of CRV tokens, estimated at $37 million, to stabilize the token price and present higher APY to voters. Addressing this misunderstanding, Egorov indicated that false information was disseminated by an imposter account on Twitter and further spread by journalists who failed to authenticate the news.
In June, Egorov confirmed the full repayment of the $10 million bad debt incurred from the soft liquidations triggered by the UwU exploit. As he remarked, it's evident that a considerable percentage of the circulating CRVs were used as collateral for loans, inadvertently leading to bad debt, but this debt had been fully discharged and had no bearing on anyone.
On inquiring how Curve Finance intends to address liquidation risks during turbulent market conditions, Egorov suggested imposing borrowing caps for non-major cryptocurrencies. In terms of onchain arbitrage, Egorov pointed out that many industry heavy-weights lacked the knowledge to properly handle liquidations. To tackle broader implications of liquidations in decentralized finance, Egorov proposed the development of open-source liquidation bots and better community education concerning liquidations.
Published At
6/16/2024 1:45:41 PM
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