Michael Egorov, the mastermind behind Curve Finance (CRV), has shared his perspective on the recent hack of UwU Lend, clarifying that the breach did not target Curve Finance itself. In a discussion with Cointelegraph, Egorov made it clear that “this was not a flaw in Curve. This was an issue with a different project [UwU Lend].”
Egorov emphasized the need for preventative measures to avoid future breaches, suggesting that UwU Lend should “re-audit all contracts and involve reputable security experts” in order to potentially recover any losses.
Initially, it was reported that Egorov proposed burning 10% of CRV tokens, worth $37 million, to stabilize the token’s value and provide higher annual returns to voters.
In a subsequent conversation with Egorov, he debunked the misinformation about the team planning to burn 10% of CRV tokens.
Egorov disclosed on June 15 that he had successfully settled the $10 million in bad debt resulting from the soft liquidations triggered by the UwU hack.
When asked about how Curve Finance plans to handle liquidation risks in turbulent markets, Egorov mentioned the implementation of risk management strategies.
Regarding onchain arbitrage, Egorov shared his insights, stating:
Looking forward, in order to address the broader implications of liquidations in decentralized finance, Egorov proposed the development of “open-source liquidation bots” and community education on the topic of liquidations.
In other news, Elon Musk pledges to ban Apple, Greenpeace advocates for Bitcoin’s PoS, and more in this week’s Hodler’s Digest, covering June 9-15.
Curve CEO dispels misinformation about UwU Lend hack and CRV burn