Curve E-DAO closed governance token rewards for multiBTC, crvCRVETH, Arbitrum Tricrypto, alETH, msETH and pETH pools.
curve financinga well-known credit protocol, recently took decisive action following two major cryptocurrency exploits in July.
On August 2nd, a Curve E-DAO member, Gabriel Shapiro, announced the termination of the governance token rewards for specific liquidity pools affected by recent exploits.
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The termination took place conducted by the decentralized autonomous organization Curve Emergency (Curve E-DAO), a technical committee within the Curve DAO governance structure. The actions of this committee directly affected pools such as alETH+ETH, msETH-ETH, pETH-ETH, crvCRVETH, Arbitrum Tricrypto and multibtc3CRV.
Commenting on the decision, Gabriel Shapiro announced that the emergency DAO had done so removed these rewards to “disincentivize further participation in these compromised pools”.
The first incident on July 6 concerned a withdrawal of over $100 million from various bridges in the multichain protocol. After the Multichain team labeled these transfers as “abnormal”, the Curve team warned its users about potential risks related to its multibtc3CRV liquidity pool.
The second, a reentry attack on July 30, Curve Finance targeted and caused a loss of over $47 million in cryptocurrencies. The attack directly affected pools created using the Vyper protocol.
Despite the gravity of these heroic deeds The affected pools continued to generate Curve DAO (CRV) governance token rewardsThis means users can still deposit tokens to earn CRV.
The latest action by Curve E-DAO aims to do just that Mitigate further risks by discontinuing these rewards. It’s important to remember that The decision can be changed with the Curve DAO vote.
The latest actions by the Curve E-DAO come amid a worrying wave of hacks and scams in the cryptocurrency landscape. Other notable incidents in July include Alphapo’s alleged loss of over $60 million and zkSync’s loss of $3.4 million.
Curve’s emergency response, reflected in the discontinuation of rewards for impacted pools, represents a strong commitment to security and governance. Through swift and targeted actions, the Curve community has demonstrated a willingness to adapt and respond to challenges , underscoring the importance of vigilance and proactive risk management in the dynamic cryptocurrency landscape.
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