Over $100M Worth of Crypto at Risk Following Curve Finance Exploit; CRV Token’s Decline

Curve, a prominent decentralized finance (DeFi) platform built on the Ethereum blockchain, has fallen victim to a significant exploit, as confirmed by a tweet from the project.

The platform’s vulnerability to a “re-entrancy” bug in the Vyper programming language has exposed upwards of $100 million worth of cryptocurrency to potential risk.

The exploit resulted in the draining of several stablecoin pools on the Curve system, which play a crucial role in pricing and liquidity for various DeFi services.

The exploit in the Vyper programming language, which powers specific components of the Curve system, has led to the draining of several stablecoin pools.

These pools are integral to the platform’s operations and underpin various DeFi services. As a result, the attack has exposed more than $100 million worth of cryptocurrency to potential losses.

The exact extent of the damages remains uncertain at the time of reporting, but BlockSec, a blockchain auditing firm, estimates losses above $42 million based on a preliminary analysis shared on Twitter.

The exploit has had a destabilizing effect on the trading markets for Curve’s native CRV token. As a result of the attack, the CRV token’s value plummeted by 17% within a single day, reaching a price of $0.61 at the time of reporting.

This sharp decline in token value threatens to exacerbate the situation, with potential liquidation looming over the founder of Curve, who holds a substantial $70 million borrowing position on Aave, another DeFi lending platform.

The vulnerability in the Vyper programming language, which facilitated the exploit on Curve, may also impact other projects that rely on Vyper.

However, the exact scope of this vulnerability and its implications on the broader DeFi ecosystem is yet to be fully assessed. Curve’s team has stated that pools using Vyper versions 0.2.15, 0.2.16, and 0.3.0 are at risk.

The platform has taken immediate action, with affected pools either drained or subjected to “white hacking” to mitigate further damages.