The decentralized finance (DeFi) sector has been hit by another major exploit, this time affecting the popular stablecoin platform Curve. On July 29, an attacker managed to drain over $7.5 million worth of crypto from the Curve sUSD pool, exploiting a flaw in the pool’s smart contract.
The attack was quickly detected and stopped by the Curve team, who deployed a fix and restored the pool to normal operation. However, the damage was already done, as the attacker got away with a large amount of stablecoins, including DAI, USDC, USDT and sUSD.
The Curve team issued a statement on Twitter, explaining that the exploit was caused by an incorrect calculation of virtual price in the sUSD pool. They also assured users that no other pools were affected and that the funds in the sUSD pool were safe.
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The Curve team also thanked Justin Sun, the founder of TRON and CEO of BitTorrent, for his support and assistance during the incident. Sun, who is a vocal advocate of DeFi and a major investor in Curve, tweeted that he was in contact with the Curve team and offered his help to resolve the issue.
Sun also called for greater security measures and audits in the DeFi sector, saying that such exploits are detrimental to the growth and adoption of DeFi. He urged the DeFi community to work together and cooperate to prevent future attacks and protect users’ funds.
Sun’s support for Curve is not surprising, as he has been actively involved in the DeFi space for a long time. He launched his own DeFi platform, JUST, on TRON in April 2020, offering users various services such as lending, borrowing, stablecoins and governance tokens. He also invested in several DeFi projects, such as 1inch, Aave, Compound and Uniswap.
Sun has also been promoting interoperability between TRON and other blockchains, especially Ethereum, which hosts most of the DeFi applications. He recently announced that TRON would launch a wrapped version of Bitcoin on its network, allowing users to access Bitcoin-based DeFi services on TRON. He also revealed that TRON would support Ethereum’s upcoming upgrade to proof-of-stake (PoS), dubbed ETH 2.0.
Sun’s vision is to create a more inclusive and accessible DeFi ecosystem that benefits users across different platforms and networks. He believes that DeFi is the future of finance and that it can empower people to take control of their own money and assets.
Curve is one of the leading DeFi platforms on Ethereum, specializing in stablecoin liquidity provision and exchange. It allows users to deposit and swap various stablecoins at low fees and high efficiency. It also offers users incentives to provide liquidity by distributing its native governance token, CRV.
Curve has been growing rapidly since its launch in January 2020, attracting over $10 billion worth of total value locked (TVL) in its pools. It has also integrated with several other DeFi protocols, such as Yearn.finance, Synthetix and SushiSwap.
However, Curve has also faced some challenges and controversies along the way. In August 2020, it suffered a governance crisis when an anonymous user deployed its CRV token contract without the team’s consent, triggering a chaotic distribution process. In November 2020, it was accused of being centralized and censoring some users’ votes on its governance platform.
Despite these setbacks, Curve has remained one of the most popular and innovative DeFi platforms in the market. It has also been working on improving its security and governance, as well as expanding its features and functionality. It recently launched a new pool for Euro-based stablecoins, as well as a cross-asset swap feature that allows users to swap between different types of assets without going through stablecoins.
The latest exploit on Curve is a reminder of the risks and challenges that still exist in the DeFi sector. It also highlights the need for more collaboration and cooperation among DeFi stakeholders, as well as more education and awareness among users. As Sun said, DeFi is still in its early stages and has a lot of potential to grow and improve. With more support and participation from influential figures like Sun, DeFi can overcome its obstacles and achieve its goals.
Aave Community Votes on ARFC Proposal to Deploy Aave V3 on Base
Meanwhile, the Aave community has recently voted on an important proposal to deploy Aave V3 on Base, a decentralized protocol for cross-chain asset exchange. The proposal, known as ARFC (Aave Request for Comment), was submitted by the Base team and received overwhelming support from the Aave governance token holders.
Aave V3 is the latest version of the popular lending and borrowing platform that offers improved features such as liquidity mining, flash loans, credit delegation, and more. Base is a protocol that enables users to swap any asset across any blockchain, without intermediaries or centralized exchanges. By integrating Aave V3 with Base, users will be able to access a wider range of assets and liquidity pools, as well as benefit from lower fees and faster transactions.
The ARFC proposal outlined the technical details and benefits of deploying Aave V3 on Base, as well as the incentives for both Aave and Base users. According to the proposal, Aave V3 will be deployed as a smart contract on Base, and users will be able to deposit and borrow any asset supported by Base. The interest rates and collateral ratios will be determined by the Aave protocol, and users will also earn AAVE tokens for providing liquidity. Additionally, users will be able to swap their assets across different blockchains using Base’s native token, BASE, which will also be integrated with Aave V3.
The Aave ARFC proposal is a new initiative that aims to improve the governance and risk management of the Aave protocol. ARFC stands for Aave Risk Framework Committee, and it is a group of experts and stakeholders that will oversee the risk parameters and policies of the protocol.
The ARFC proposal was submitted by Gauntlet, a platform that uses simulation and machine learning to optimize the performance and security of decentralized protocols. Gauntlet has been working with Aave since 2020, providing risk analysis and recommendations for various aspects of the protocol, such as interest rates, collateral ratios, and liquidation thresholds.
The ARFC proposal seeks to formalize and expand the role of Gauntlet in the Aave ecosystem, by creating a dedicated committee that will work closely with the Aave core team, the Aave community, and other risk partners. The ARFC will have the following responsibilities:
Monitor and assess the risk profile of the Aave protocol and its markets.
Propose and implement changes to the risk parameters and policies of the protocol.
Communicate and educate the Aave community and users about the risk framework and its rationale.
Coordinate with other risk partners and external auditors to ensure the security and robustness of the protocol.
The ARFC proposal is currently under discussion in the Aave governance forum, where anyone can share their feedback and questions. The proposal will also undergo a formal vote by the AAVE token holders, who will ultimately decide whether to approve or reject it.
The ARFC proposal is an important step towards enhancing the governance and risk management of the Aave protocol, which is one of the leading decentralized lending platforms in the crypto space. By creating a dedicated committee of experts and stakeholders, the proposal aims to ensure that the protocol remains safe, efficient, and responsive to the needs and preferences of its users.
The proposal also stated that the integration will increase the adoption and awareness of both Aave and Base, as well as create synergies between the two communities. The proposal received 98% approval from the Aave token holders, who expressed their enthusiasm and support for the collaboration. The Base team also thanked the Aave community for their vote of confidence and announced that they will start working on the implementation as soon as possible.
The deployment of Aave V3 on Base is expected to be completed by the end of the year and will mark a significant milestone for both protocols. The integration will offer users a new level of flexibility and efficiency in managing their assets across different blockchains, as well as open up new opportunities for innovation and growth in the decentralized finance (DeFi) space.