Curve Finance, a platform for decentralized finance (DeFi), has revealed its strategy for compensating users who were harmed by the most recent attack that cost $62 million.
Due to flaws in the release history of its Vyper compiler, Curve Finance lost $62 million, with numerous pools being impacted.
Stablecoins and other assets with the same denomination can be traded on the decentralized market called Curve Finance.
Instead of sending money directly to Curve Finance, the hacker took a 10% bounty award and started a partial refund by moving money to the Alchemix Finance developer wallet.
According to Cryptopolitan, the protocol suffered a startling loss of $62 million as a result of the hack, which happened on July 30. Curve Finance has reacted quickly and pledged to make the impacted users whole as the DeFi community deals with the fallout.
Official postings from Curve Finance’s account state that ongoing investigations have advanced and that as of August 11, 2023, about 79% of the monies had been successfully recovered.
The site also disclosed that, in order to maintain the equitable distribution of resources, it will assess each affected user for refunds.
Unexpectedly, 10% of the stolen assets from Curve Finance were offered as a reward to the perpetrator of the attack, and after accepting the offer, the hacker began reimbursing the money. The total amount of the refunded monies reached 4,821 Ethereum, which is equal to about $8,891,578 in on-chain statistics from Etherscan.
According to the article by Luisa Crawford, the hack has significantly affected Curve Finance. The total value of assets locked (TVL) on Curve Finance has decreased to its lowest level in two years, standing at $2.83 billion as of the time of writing, according to data from DefiLlama. This is a 24% decrease from the exploit’s July 30 peak.
In addition, Curve’s trading volume decreased to $100 million as of August 10 from $143 million before the attack.
The DeFi community’s faith has clearly been affected by the Curve Finance attack, but the platform’s dedication to refunding consumers and the hacker’s partial repayment of cash provide a glimmer of optimism. The event acts as a wake-up call for platforms worldwide to fortify their defenses and emphasizes the value of security in the quickly developing realm of decentralized money.