One of the top decentralised exchanges for cryptocurrencies saw a decline in its native currency after the platform claimed it had been “exploited” due to a programming language flaw.
Like other decentralised financial projects in cryptocurrency, Curve financial depends on several types of software created using blockchain technology. The exploit was caused by a bug in a specific version of Vyper, a Python-like programming language frequently used in DeFi applications, Curve tweeted on Sunday.
According to statistics gathered by Bloomberg, Curve Finance’s CRV token has lost almost 13 percent since the issue first surfaced and was trading at roughly 64 US cents as of 12:50pm on Monday in Singapore.
BlockSec, a company that offers security assessment services for crypto software, calculated that the hack had already resulted in losses of more than $40 million, or around Rs. 329 crore. According to CEO and creator of the cryptocurrency risk modelling company Gauntlet Tarun Chitra, the exploiter got off with nearly $20 million (about Rs. 164 crore) in CRV and a forked form of Ether.
Curve stated, “We are evaluating the situation and will notify the neighbourhood as things unfold.
According to data provider DeFiLlama, the entire value of assets locked on Curve Finance, the second-largest decentralised exchange after Uniswap, declined from more than $3 billion on Sunday to nearly $1.7 billion (about Rs. 13,987 crore) on Monday.
Michael Egorov, the creator of Curve, did not instantly respond to a request for comment.
Aave, a decentralised lending platform, accepts CRV as collateral. According to Chitra from Gauntlet, despite the decline in CRV, there have been no indications of “bad loans” on the Aave platform thus far. In the last day, the value of Aave’s token has decreased by around 4%, according to CoinGecko data.
On account of worries about wider potential knock-on consequences, digital assets like Bitcoin and Ether shook a little bit before stabilising. Bitcoin barely changed.
