The community of Curve Finance, a decentralized finance (DeFi) protocol, has voted to reimburse liquidity providers (LPs) who were affected by a $61 million hack in July. The vote, which saw 94% of tokenholders approve the disbursement of tokens worth over $49.2 million, aims to cover the losses incurred by the Curve, JPEG’d, Alchemix, and Metronome pools.
The calculation of losses includes the amount of Ether (ETH) and CRV tokens in the pools before the hack, as well as the missed CRV emissions that would have been distributed to LPs over the past months. The community fund will supply the Curve DAO (CRV) tokens, and the final amount also takes into account the tokens that have been recovered since the incident.
The security incident occurred on July 30 and exposed several DeFi protocols to a stress test in the following days. Curve’s total value locked (TVL) at the time was nearly $4 billion, and pools such as alETH/ETH, pETH/ETH, msETH/ETH, and CRV/ETH were affected. While some of the stolen funds were recovered, the pools still experienced a shortfall due to the actions of MEV bots.
The attacker exploited a vulnerability in stable pools using certain versions of the Vyper programming language, which is commonly used in DeFi protocols. The bug made Vyper versions 0.2.15, 0.2.16, and 0.3.0 susceptible to reentrancy attacks.
This reimbursement proposal aims to make the affected LPs whole and address the impact of the hack on the crypto ecosystem. By approving the disbursement of tokens, the Curve Finance community is taking steps to support its liquidity providers and maintain the integrity of the protocol.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | neutral |
| Relevance Score | 1 |
| People | None |
| Companies | Alchemix, JPEG’d, Curve Finance, Curve DAO, Metronome |
| Currencies | JPEG’d, Alchemix, Curve DAO, Ethereum, Metronome |
| Securities | None |
