Curve Finance Tells Users To Revoke Recent Contracts

Curve Finance tells its users to revoke any recent contracts, because of a recent malicious attack on the site.

Automated market creator Curve Finance used Twitter on Tuesday to alert users of the vulnerability on its platform.

Curve Finance Tells Users To Revoke Recent Contracts

The protocol’s developers observed that the problem, which seemed to be a malicious actor’s attack, was affecting the service’s nameserver and frontend.

Using a different domain name system (DNS) provider, Curve said through Twitter that their exchange, a separate product, appeared to be untouched by the hack.

But the team moved fast to solve the problem. After issuing the original warning, Curve announced that it had discovered and fixed the problem and advised customers to “immediately” withdraw any contracts they have just approved.

Iwantmyname, a provider of DNS servers, was most likely compromised, according to Curve, who also stated that the company has since changed its nameserver.

Like a directory, a nameserver converts domain names into IP addresses.

Twitter user LefterisJP predicted that the suspected attacker had most likely used DNS spoofing to carry out the exploit on the service while it was still active:

looks as usual to me? how can one tell it is compromised? pic.twitter.com/79205EZeZW

— La Tour (@LaTour85640275) August 9, 2022

The alert was promptly shared on Twitter by other DeFi industry members, some of whom noted that the alleged theft appeared to have totaled more than $573,000 USD.

Analysts said they were favorably evaluating Curve Finance back in July, despite the market downturn that is still having an impact on the bigger DeFi business. Researchers at Delphi Digital especially mentioned the platform’s yield potential, the demand for Curve DAO Token (CRV) deposits, and the protocol’s revenue creation via stablecoin liquidity as grounds for their optimism.

This came after the platform’s June publication of a brand-new “algorithm for exchanging volatile assets” that promised to enable low-slippage swaps between “volatile” assets. These pools combine a bonding curve approach, previously used by well-known automated market makers like Uniswap, with internal oracles that rely on exponential moving averages (EMAs).

A Brief History Of Curve Finance

With a web interface that somewhat evoked the 1990s and was intended to essentially aggregate stablecoin liquidity, Curve Finance debuted in January 2020.

The protocol was developed by Michael Egorov, a Russian physicist. Prior to Curve, Egorov established NuCypher, a finance business that specialized in encryption technologies, in 2016.

The unaudited Curve protocol generated $500,000 in TVL in the first 10 days after its debut.

Also, in order to avoid regulatory restrictions in the USA, Curve Finance based its operations in Switzerland.

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