On July 30, Curve Finance, a decentralized exchange on Ethereum, suffered a hack due to a vulnerability in certain pools built using the Vyper programming language.
The price of Curve DAO (CRV) dropped 20.91% on the day of the hack, falling to a two-month low of $0.58.
The next day, the decline in CRV continued to a seven-month low of $0.48 amid fears of liquidation of hefty loans worth $100 million taken by Curve Finance founder Michael Egorov against CRV as collateral.
However, positive developments such as partial repayment of loans and significant negative bets in the derivatives market suggest that CRV may rally in the short term.
The DeFi community comes to save CRV
On Aug. 1, Egorov sold 39.25 million CRV tokens for stablecoins to a number of notable decentralized finance investors like Justin Sun, Machi Big Brother and DWF Labs for a total of $15.8 million, according to Lookonchain data.
More and more institutions and investors bought $CRV via OTC!
Machi Big Brother bought 3.75M $CRV.
DWF Labs bought 2.5M $CRV.https://t.co/MQg382LigF bought 2.5M $CRV.
…Michael Egorov has sold a total of 39.25M $CRV via OTC and received 15.8M $USDT.https://t.co/hQBlW5WG6J pic.twitter.com/NMIQ2p05ZL
— Lookonchain (@lookonchain) August 1, 2023
The buyers purchased…
