Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
The $47 million Curve Finance exploit on July 30 had a domino effect on the DeFi ecosystem, mainly due to the $100 million loan taken out by the Curve founder against the platform’s native Curve DAO (CRV) token. Several lending protocols have rushed in with new governance proposals to minimize CRV exposure risks as the token price fluctuates. On Aug. 3, the native stablecoin of the ecosystem crvUSD depegged due to market conditions.
Being considered the backbone of the DeFi ecosystem, the Curve exploit could trigger a severe crisis.
The Curve crisis also had a negative impact on the price of the DeFi tokens, with a majority trading in the red on the weekly charts.
Curve Finance pools exploited by over $47 million due to reentrancy vulnerability
Several stable pools on Curve Finance using Vyper were exploited on July 30, with losses reaching over $47 million. According to Vyper, its 0.2.15, 0.2.16 and 0.3.0 versions are vulnerable to malfunctioning reentrancy locks.
“The investigation is ongoing but any project relying on these versions should immediately reach…
