Curve Finance, a decentralized finance (DeFi) platform, has decided to reimburse liquidity providers (LPs) who were hacked for $61 million in July.
The disbursement, approved by 94% of tokenholders, involves tokens worth over $49.2 million to offset losses in the Curve (CRV), JPEG’d (JPEG), Alchemix (ALCX), and Metronome (MET) pools.
The tokens will be sourced from the Curve DAO (CRV) community fund, considering the quantity of Ether and CRV tokens in the pools before the hack and the missed CRV emissions to LPs.
Despite the partial recovery of stolen funds, MEV bots left affected pools with a shortfall, prompting the remediation proposal to make affected LPs whole.
In response, Curve Finance proposed treating the incident as a white-hat event with the condition of returning 90% of the stolen funds.
While some hackers, particularly those from the Metronome breach, accepted the offer and returned funds, others did not. The community, recovering millions back, has decided to reimburse affected users by allocating millions worth of CRV tokens, covering both stolen funds and missed emissions due to the hack.
The recent attacks indicate the need for enhanced security measures in CurveDAO-related pools.
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