Decentralized finance protocol (DeFi) Curve Finance (CRV) says it will compensate users who suffered losses due to a massive security breach earlier this year.
In late July, a vulnerability in the Vyper 0.2.15 programming language allowed hackers to abuse several liquidity pools on the platform, leading to losses of approximately $70 million.
The incident caused Curve’s total value locked (TVL), or the value in its smart contracts, to drop from $3.25 billion to $1.67 billion at the time.
Although some or all of the stolen funds in each liquidity pool were recovered, the breach still left a shortage of liquidity providers (LPs). A proposal has been submitted to address the restriction.
“This restructuring proposal is intended to make the affected LPs whole. The Curve team has worked with each affected protocol team for months in the aftermath of the hack to develop an equitable process for compensating victims and they believe this arrangement is in the best interests of Curve DAO (Decentralized Autonomous Organization ) and its users.
In a new post on social media platform X, Curve say it is allocating approximately $49.2 million in crypto assets to those affected by the exploit after token holders voted to compensate victims of the hack.
“I just wanted to emphasize the magnitude of this. Victims will be healed with this vote, where: – $7.2 million in ETH recovered by whitehats will be distributed to the DAO – – $42 million in CRV to compensate for unrecovered portions (acquired) – Other funds recovered by whitehats distributed before the vote .”
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