Michael Egorov, the mastermind behind Curve Finance (CRV), has provided insights into the recent UwU Lend hack, emphasizing that the breach did not target Curve Finance itself. In an interview with Cointelegraph, Egorov made it clear that “this was not a Curve exploit. This was an exploit of a separate project [UwU Lend],” elaborating further:
Egorov outlined steps to prevent similar exploits in the future, advising UwU Lend to “re-verify all contracts and engage reputable security auditors” in hopes of recovering the losses. Initially, there were reports that Egorov suggested burning 10% of CRV tokens, amounting to $37 million, to stabilize the token’s value and enhance annual percentage yields for voters.
However, Egorov later clarified in a follow-up Q&A that there was misinformation about the team planning to burn 10% of CRV tokens. In a separate development, Egorov disclosed on June 15 that he had successfully settled the $10 million bad debt arising from soft liquidations triggered by the UwU exploit.
When asked about how Curve Finance intends to mitigate liquidation risks in volatile markets, Egorov stated:
Regarding onchain arbitrage, Egorov shared:
Looking forward, in addressing the broader implications of decentralized finance related to liquidations, Egorov proposed the development of “open-source liquidation bots” and educating the community about liquidations.
In other news, Elon Musk vows to ban Apple, Greenpeace advocates for Bitcoin’s Proof of Stake, and more in Hodler’s Digest from June 9-15.