Curve CEO Clarifies UwU Lend Hack and CRV Burn Rumors

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Michael Egorov, the CEO and founder of Curve Finance (CRV), says the organization itself was not compromised in the recent hack incident involving UwU Lend. As per the attack, Egorov provided clarity on the project affected and measures instituted to prevent reoccurrence.

Curve Finance Founder: Exploit was UwU Lend Specific

According to Cointelegraph, Egorov explained that the “exploit” was not on Curve. “This was an exploit of a separate project [UwU Lend],” he stated.

Available information reveals that the hacker obtained CRVs tokens from UwU Lend and deposited them into lend.curve.fi (LlamaLend), and then vanished with the funds. The hacker proceeded to leave his debt in the system and Curve Finance was exposed to liability.

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The Curve Finance CEO noted it is necessary to keep all preventive measures functioning at optimum to forestall such incidents. He recommended that UwU Lend engages in a re-verification exercise of all contracts in order to connect them to good security auditors. This he opines will mitigate future risks and recover losses. UwU Lend team has taken concrete steps in that direction.

Addressing the CRV Token Burn Rumors

Speaking on reports of a proposal to burn 10% of CRV tokens to stabilize the price, Egorov maintained it was untrue and malicious misinformation. According to him, the information that $37 million worth of tokens designated for burning to stabilize prices boost the annual percentage yield for voters was sent out by a fake account.

He said the impersonator also posted a scam link along with the information. The Curve founder blamed the journalist who published the information without conducting a fact-check on it.

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Managing Liquidation Risks and Recovery

Meanwhile, Curve Finance suffered a huge liquidation in its position as per the report. Notably, Egorov says the exposure to the tune of $10 million in bad debt, caused by the soft liquidations triggered by the UwU exploit has been settled.

As per Curve Finance’s approach to managing liquidation risks in volatile markets, Egorov stated, “For non-major crypto (e.g., not BTC or ETH as collateral), one should likely provide borrow caps; data shows that Curve-specific markets can be well-parametrized to withstand even these conditions.”

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