DeFi Heavyweight Curve aims to become ‘safest’ lending platform, says founder

• Monday’s UwU Lend exploit triggered a series of events that led to the automatic liquidation of Michael Egorov’s $100 million in loans from various protocols, causing the CRV token to decline by up to 30%.

• Despite bad debts and liquidations, Egorov said he remains committed to ensuring all users can withdraw their deposits and is working to make Curve Finance’s lending/borrowing products the safest in the industry.

UwU Lend’s exploit on Monday triggered a series of events that led to multimillion-dollar liquidations on DeFi lending giant Curve on Thursday, representatives of its founder Michael Egorov told CoinDesk in messages on Friday. Telegram.

Egorov’s $100 million in loans taken out from various protocols using Curve’s CRV tokens began being automatically liquidated on Thursday, causing the token to fall as much as 30% before briefly recovering.

The catalyst for bad debts and liquidations dates back to UwU Lend, a crypto protocol that allows users to bury, lend, and stake tokens.

“On April 15, they (UwU Lend) deployed vulnerable code for new markets (sUSDe), and these markets are not isolated, so the whole platform takes the risk,” Egorov said. “UwU was hacked and the hacker, as part of a cash-out game, deposited CRVs from UwU into ready.curve.fi (LlamaLend) and disappeared with the funds, leaving his debt in the system.

UwU loan lost $20 million on Monday after being hit by a flash loan attack and another $3.7 million on Thursday in a separate attack. Since Friday, he has been offering a $5 million bounty to catch attackers.

In an article X, Egorov estimated bad debts in a particular CRV loan pool at $10 million. Although this market was completely isolated from other lending pools, CRV depositors could not withdraw their funds as long as bad debts existed.

However, Egorov said the situation could help strengthen Curve’s security measures and lending mechanisms and could create a better service for users in the coming months.

“Yesterday the system was tested in unthinkable conditions,” Egorov said. “We have a lot to process, but most importantly, we have all the information we need to make lending the safest and most resilient there has ever been. »

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“I am committed to ensuring that all users can withdraw their deposits without any problems. I still think Curve Finance is my priority, and the most important thing is our community,” he added.

Curve is among the largest crypto protocols with over $2 billion in assets locked as of Friday, DéfiLlama data watch.

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