Curve CEO UwU Lend Hack, CRV Burns Misinformation
Michael Egorov, founder and CEO of Curve Finance (CRV), recently weighed in on the UwU Lend hack, stating that the incident did not involve Curve Finance itself.
“This was not a curve exploit,” Egorov said in a Q&A with Cointelegraph. This particular project was exploitative. [UwU Lend]When he explained:
“[…] The hacker deposited CRVs from UwU into lend.curve.fi (Lamaland) as part of a cash-out game and disappeared with the money, leaving the debt in the system.
Egorov highlighted the measures to prevent future exploits, UwU Lend “to re-verify all contracts and contact good security auditors” hoping to save losses.
Related: Curve Finance Runs Smooth Liquidation, But CRV Falls 28%
Fake CRV burning ad
As Cointelegraph first reported, Egorov proposed to burn 10% of CRV tokens, valued at $37 million, to stabilize the token's value and provide voters with an annual percentage yield.
In a Q&A with Egorov, the team addressed misinformation about burning 10% of CRV tokens:
“This information was tweeted by a fake (fake) account, with a scam link. Few journalists do not check the news properly and do not publish news about this matter.
RELATED: Curve Founder Pays 93% of $10M in Bad Debt Payments
Paying off bad debt
Egorov announced on June 15 that he had fully repaid $10 million in bad debt caused by the soft liquidations fueled by UwU's exploits.
“The CRVs that were posted as collateral were probably 30% of the revolving supply, half of which was on the curve, so of course, there was some bad debt. It was already paid off. Nobody was affected.”
RELATED: Curve Financial's Michael Egorov Gets $10 Million in Bad Debt Paid in Full
Liquidity risk management
When asked how Curve Finance plans to manage downside risks in volatile markets, Egorov told Cointelegraph:
“For non-core cryptos (eg BTC or ETH not as collateral), one must provide borrowing caps. The data shows that curve-driven markets can be well prepared to deal with even these conditions.
Egorov had this to say about the topic of onchain arbitration:
“It seems they have absolutely no idea how to deal with industrial heavyweights. They didn't try to do semi-heavy fluid stuff for my position on the curve. Eventually I had to do it myself.
Looking ahead, to address the broader decentralized financial implications of liquidity, Egorov proposes the creation of “open source liquidity bots” and community education about liquidity processes.
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