According to BlockBeats, a series of events triggered by a vulnerability incident at UwU Lend on June 14th led to the liquidation of millions of dollars for DeFi lending giant Curve. This information was relayed to CoinDesk via a Telegram message from a representative of Curve's founder, Michael Egorov, on the following Friday.
Egorov had borrowed $100 million in loans from various protocols using Curve's CRV token. These loans began to be automatically liquidated on Thursday, causing the token to drop by as much as 30%, before briefly rebounding.
However, Egorov stated that this situation could potentially strengthen Curve's security measures and lending mechanisms, and possibly create better services for users in the coming months. 'The system was tested under unimaginable conditions yesterday,' Egorov said. 'We have a lot to deal with, but most importantly, we have all the information on how to formulate the safest, most resilient loan/borrowing scheme.'
He added, 'I am committed to ensuring that all users can withdraw their deposits without any hassle. I have always considered Curve Finance to be my top priority, and most importantly, our community.'