Curve Hack and Chainlink Saved DeFi | Crypto Daily Digest July. 31

Curve and several other protocols were exploited due to a bug in specific versions of Vyper, a language used to code smart contracts. The liquidity pools for alETH, msETH, and pETH fell victim to the exploit, resulting in losses exceeding $50 million. As a consequence, Curve's Total Value Locked (TVL) decreased by almost 50%, reaching $1.7 billion.

The native token $CRV also experienced significant losses, dropping by over 12%. At one point of time, the price of the CRV/WETH pair on Uniswap plummeted to nearly 0, reaching as low as around $0.08. Fortunately, this price was not used as a reference by the Chainlink oracle for other DeFi protocols. Instead, Chainlink quoted the lowest price at that time, which was $0.59. This crucial distinction saved numerous other DeFi lending protocols from cascade liquidation.

Chainlink's feed price is determined by a weighted quote of Centralized Exchange (CEX) price and Decentralized Exchange (DEX) price. Since Uniswap's CRV liquidity pool is relatively small, the Chainlink quote did not rely on the Uniswap price, providing a safeguard against potential disruptions in the DeFi ecosystem.

Today's Market

Headlines

Curve Finance Suffered Attack and Currently Lost over $52M

Curve Hack Caused by Ethereum Programming Language Vyper Vulnerability

Other News in Case You Missed it:

EDGE Global AI & Web3 Investment Summit to Be Held in Hong Kong from September 25 to 27

Coinbase's Base Chain TVL Surged 10,000% in One Day

Matrixport and Bitdeer Founder Jihan Wu Expressed Strong Support for Curve

U.S. SEC Asked Coinbase to Delist All Tokens, except Bitcoin

What's New from TokenInsight？

Crypto Market Insights 2023Q2: After the boom in Q1, the crypto industry did not experience many ups and downs in Q2, but more changes from the traditional market. So what happened in Q2? What was the impact? Let's take a look.

Master Market Cycles: Decode Top Crypto Indicators: When to buy the dip? When to cash out? This course will definitely help you!

Is a “Decentralized Binance” on the Horizon?: A Complete Guide to Trading-Focused Order Book Protocols