PANews June 16 news, according to Cointelegraph, Michael Egorov, founder and CEO of Curve Finance (CRV), recently expressed his views on the recent UwU Lend hacking incident, making it clear that the incident did not exploit Curve Finance itself. Egorov clarified: "This is not a vulnerability exploited by Curve, but a vulnerability exploited by the UwU Lend project." He explained that the hacker deposited the CRV obtained from UwU into Curve's LlamaLend platform and disappeared, leaving debts in the system. Egorov suggested that UwU Lend revalidate all contracts and work with high-quality security auditors to prevent similar incidents in the future and recover losses. At the same time, he also clarified the misinformation about the destruction of CRV tokens to stabilize prices and increase APY, saying that this was false information released by fake accounts. Cointelegraph initially reported that Egorov proposed to destroy 10% of CRV tokens worth $37 million to stabilize token prices and provide voters with higher APY.
In terms of liquidation risk management, Egorov said Curve Finance has a borrowing limit for non-major cryptocurrencies (non-BTC or ETH collateral), and emphasized that Curve's specific market can be well parameterized to cope with market fluctuations. He also pointed out that there are shortcomings in the industry in handling liquidations, such as the failure to perform partial hard liquidations on his Curve positions in a timely manner, which he eventually had to handle on his own.
In addition, Egorov announced on June 15 that he had fully repaid the $10 million in bad debt caused by the soft liquidation triggered by the UwU vulnerability exploit, emphasizing that this did not affect anyone. These actions show Egorov’s emphasis on ensuring the stability of Curve Finance and safeguarding the rights of users.
