Michael Egorov, the founder and CEO of Curve Finance (CRV), has weighed in on the latest UwU Lend hack, explaining that the incident didn’t exploit Curve Finance itself.
In a Q&A with Cointelegraph, Egorov clarified that “this was not a Curve exploit. This was an exploit of a separate challenge [UwU Lend],” explaining:
“[…] the hacker, as part of cash-out play, deposited CRVs taken from UwU to lend.curve.fi (LlamaLend) and disappeared with the funds, leaving his debt within the system.”
Egorov highlighted measures to forestall future exploits, recommending that UwU Lend “re-verify all contracts and join them to good safety auditors” to hopefully recuperate losses.
Associated: Curve Finance soft liquidation works, but CRV plunges 28%
Pretend CRV burn announcement
Cointelegraph initially reported that Egorov had proposed burning 10% of CRV tokens, valued at $37 million, to stabilize the token’s value and supply elevated annual share yield to voters.
Within the subsequent Q&A with Egorov, he addressed the misinformation in regards to the staff burning 10% of CRV tokens:
“This info was tweeted by a pretend (impersonator) account, accompanied by a rip-off hyperlink. Few journalists didn’t fact-check the information and printed information about this.”
Associated: Curve founder repays 93% of $10M bad debt stemming from liquidation
Unhealthy debt compensation
Egorov introduced on June 15 that he had totally repaid the $10 million in unhealthy debt brought on by gentle liquidations triggered by the UwU exploit.
“CRVs posted as collateral for loans amounted to most likely 30% of the circulating provide; half of that was on Curve, so certainly, it incurred some unhealthy debt. It was already repaid. Nobody is affected.”
Associated: Curve Finance’s Michael Egorov says $10M in bad debt fully paid
Liquidation danger administration
Asking Egorov how Curve Finance plans to handle liquidation dangers in unstable markets, he informed Cointelegraph:
“For non-major crypto (e.g., not BTC or ETH as collateral), one ought to seemingly present borrow caps; knowledge reveals that Curve-specific markets could be well-parametrized to resist even these situations.”
On the subject of onchain arbitrage, Egorov mentioned:
“It seems trade heavyweights didn’t totally know how one can take care of liquidations; they didn’t try to do partial exhausting liquidations for my place on Curve. Ultimately, I needed to do it myself.”
Trying forward, to deal with broader decentralized finance implications of the liquidation, Egorov instructed the creation of “open-source liquidation bots” and group schooling about liquidations.”
