Decentralized finance (DeFi) protocol Curve Finance (CRV) says it will compensate users who sustained losses as a result of a massive security breach earlier this year.
In late July, a vulnerability with the programming language Vyper 0.2.15 enabled hackers to exploit several liquidity pools on the platform, leading to losses of around $70 million.
The incident caused Curve’s total value locked (TVL), or the value sitting in its smart contracts, to drop from $3.25 billion to $1.67 billion at the time.
Although the stolen funds in each liquidity pool were either completely or partially recovered, the breach still left liquidity providers (LPs) with a shortfall. A proposal was submitted to address the impairment.
“This remediation proposal seeks to make affected LPs whole. The Curve team has been working with each affected protocol team for months in the aftermath of the hack to develop an equitable process for recompensating victims and they believe this arrangement is in the best interest of Curve DAO (decentralized autonomous organization) and its users.”
In a new post on social media platform X, Curve says it is allocating around $49.2 million in crypto assets to those hit by the exploit after token holders voted to compensate the victims of the hack.
“Just wanted to emphasize the scale of this. Victims are made whole with this vote with: – $7.2 million worth of ETH recovered by whitehats to the DAO being distributed – $42 million worth of CRV compensating unrecovered parts (vested) – Other whitehat-recovered funds distributed before the vote.”Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
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