Curve Finance, a popular decentralized exchange (DEX), has been in the spotlight following a series of exploits that have rocked the crypto world.
The platform, known for allowing users to swap like-assets such as $ETH for sETH or Tether’s $USDT for Circle’s $USDC, has seen its $CRV token climb by 500% even as the chaos unfolds.
The Hack Unfolds
On Sunday, initial reports indicated that the platform was exploited for over $24 million. However, blockchain security firm PeckShield has updated the stolen amount to $52 million as the hack continues to unfold in real-time.
Three liquidity pools for tokens paired with Ethereum (ETH) and Curve governance token $CRV, and several ERC-20 tokens issued on Alchemix (alETH), Metronome Synth (smETH), JPEG’d (pETH) were hacked due to an “issue in Vyper compiler” versions. Vyper, a programming language for writing smart contracts on the Ethereum blockchain, had older versions that were vulnerable to exploitation.
The Aftermath and Response
South Korean crypto exchange Upbit announced the temporary suspension of deposits and withdrawals of CRV tokens as a precautionary measure. Upbit’s press release stated, “Upbit will continue to monitor this situation, and members are advised to pay attention to the increase in price volatility of Curve.”
Bithumb also suspended CRV transactions, putting $100 million at risk in Curve Finance. The suspension came as a response to the significant setback faced by Curve DAO as millions of CRV tokens were pilfered just moments before a white hat rescue bid.
The Knock-On Effect
The latest tweet by Curve’s team highlighted another knock-on effect on the Vyper-based liquidity pool on its deployment on the layer-2 solution Arbitrum. The team said that Tricrypto, made of three tokens: USDC, wBTC, and ETH, was “potentially affected.”
While security experts like auditors and Vyper devs have not yet found a way for a “profitable exploit,” the pools remain vulnerable, and liquidity providers were advised to “exit that one.”
A Wider Impact
The exploit has also affected other platforms. $BNB Chain-based DEX Ellipsis reported an exploit of stable swap pools on BNB Chain, stating, “A small number of stable pools with BNB using an old Vyper compiler have been exploited.”
CRV continues to nosedive and is currently down -3.16%, adding to yesterday’s -14.25% loss.
Conclusion
The Curve Finance exploit has sent shockwaves through the crypto community, leading to a series of reactions from exchanges and other platforms. The situation continues to develop, with the stolen amount increasing and further vulnerabilities being discovered.
The sudden climb of CRV amidst the chaos adds another layer of intrigue to the story. As the crypto world grapples with the implications of the hack, the Curve Finance team and the broader community are working tirelessly to understand the full scope of the exploit and take necessary measures to mitigate the impact.
We’ll keep you updated as this story unfolds. 🧐