PANews June 15 news, according to CoinDesk, a representative of Curve founder Michael Egorov said via Telegram message on Friday that the vulnerability of UwU Lend on Monday triggered a series of events, resulting in a large number of liquidations on Curve on Thursday. Egorov's $100 million loan from various agreements using Curve's CRV token as collateral began to be automatically liquidated on Thursday, causing the token to fall by 30% before a brief recovery.
“On April 15, they (UwU Lend) deployed vulnerable code for new (sUSDe) markets, which were not isolated, so the entire platform was at risk,” Egorov said. “UwU was hacked, and as part of a cash-out campaign, the hacker deposited CRV stolen from UwU into lending.curve.fi (LlamaLend) and then disappeared with the funds, leaving the debt in the system.”
Egorov estimates that the bad debt in a specific CRV lending pool is $10 million (93% has been repaid). Although this market is completely isolated from other lending pools, CRV depositors cannot withdraw funds as long as the bad debt exists. However, Egorov said that this situation may help strengthen Curve's security measures and lending mechanisms, and may provide better services to users in the coming months.
