Curve emergency DAO terminates rewards for hack-related pools

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The Curve Finance lending protocol’s governing body has decided to terminate governance token rewards for certain liquidity pools that were affected by the July 30 Curve exploit and the July 6 Multichain exploit, according to an Aug. 2 social media post from a member of the Curve E-DAO. The pools affected by this decision include alETH+ETH, msETH-ETH, pETH-ETH, crvCRVETH, Arbitrum Tricrypto, and multibtc3CRV. The decision can be reversed in the future by a full vote of the Curve DAO.

The announcement was made by Gabriel Shapiro, a member of the Curve E-DAO. On July 6, a number of bridges that were part of the Multichain protocol experienced abnormal withdrawals of over $100 million worth of crypto. In response, the Curve team urged users to exit the multibtc3CRV liquidity pool, as it was at risk from the Multichain incident.

Exploits and Scams in Cryptocurrency World

On July 14, Multichain experienced a withdrawal caused by an individual who had gained access to its CEO’s cloud computing account, and the funds may never be returned. On July 30, Curve Finance also suffered a reentrancy attack, which resulted in the loss of over $47 million worth of crypto from the alETH, msETH and pETH pools. These pools were created using the Vyper protocol, which contained the vulnerability.

Despite these exploits, the affected pools were still producing Curve DAO (CRV) governance token rewards. This incentivized users to deposit tokens into the pools to earn CRV. However, on Aug. 8, Curve Finance’s CEO, Michael Shapiro, announced that the emergency DAO had removed these rewards to “avoid incentivizing further participation in these compromised pools.”

Investors have continued to suffer from hacks and scams in the crypto world. Payment provider Alphapo allegedly lost over $60 million on July 23 due to an attacker gaining access to its hot wallet private keys. On July 25, zkSync was also exploited for $3.4 million due to a read-only reentrancy bug. In addition, the, Flare, Fox, Floki, Gari, GLM and FitFi crypto projects have also been victims of scams and hacks.

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