Curve Finance, a prominent DeFi protocol, has taken a significant step in addressing the aftermath of a $61 million hack that occurred in July. The Curve community, through a decisive vote, has approved the disbursement of over $49.2 million in tokens as compensation for the liquidity providers affected by the hack. This reimbursement plan, which garnered the approval of 94% of tokenholders, is aimed at covering losses in various pools including Curve (CRV), JPEG’d (JPEG), Alchemix (ALCX), and Metronome (MET).
The compensation calculation considers the amount of Ether (ETH) and CRV tokens in the affected pools prior to the hack, along with missed CRV emissions that were due over the past months. The community fund of Curve DAO will supply the necessary CRV tokens for this purpose, with adjustments for any tokens recovered since the hack.
This incident, which occurred on July 30, not only affected Curve but also put several other DeFi protocols under stress, exposing vulnerabilities in the ecosystem. The attack exploited a flaw in the Vyper programming language versions used in some stable pools, leading to reentrancy attacks. Despite partial recovery of the stolen funds, the shortfall remained, prompting this remediation effort to compensate the affected liquidity providers fully.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
