The CEO of Curve has addressed the misinformation regarding the UwU Lend breach and the CRV burn

The CEO of Curve addresses the misunderstandings surrounding the UwU Lend breach and CRV token burn, providing a comprehensive overview of preventative measures and the repayment of bad debt.

Michael Egorov, the CEO and proprietor of Curve Finance (CRV), has commented on the recent UwU Lend breach, stating that the incident did not involve Curve Finance.

Egorov clarified in a Q&A with Cointelegraph that “this was not a Curve exploit.” This was an exploit of a distinct initiative, UwU Lend, as explained:

“The perpetrator deposited CRVs seized from UwU to lend.curve.fi (LlamaLend) and vanished with the funds, leaving his debt in the system.”

Egorov emphasized the importance of implementing measures to prevent future exploits, suggesting that UwU Lend “re-verify all contracts and attach them to competent security auditors” in order to potentially recoup losses.

Egorov had initially suggested that 10% of CRV tokens, which were valued at $37 million, be burned in order to stabilize the token’s price and provide electors with an increased annual percentage yield, according to Cointelegraph.

He clarified the misunderstanding regarding the team’s destruction of 10% of CRV tokens during the succeeding Q&A session with Egorov.

“A fake account tweeted this information, which was accompanied by a fraud link. A small number of journalists neglected to fact-check the news and instead published articles regarding the matter.”

On June 15, Egorov disclosed that he had compensated the $10 million in bad debt that was the result of gentle liquidations initiated by the UwU exploit.

“The circulating supply was likely 30% CRVs posted as collateral for loans, with half of that amount being on Curve. Consequently, it incurred some bad debt. Subsequently, it emerged. There is no impact on any individual.”

When Cointelegraph inquired about Curve Finance’s strategy for managing liquidation risks in chaotic markets, Egorov responded as follows:

“Data indicates that Curve-specific markets can be well-parametrized to withstand even these conditions, so it is likely advisable to implement borrow limits for non-major crypto (e.g., not BTC or ETH as collateral).”

Egorov stated the following regarding onchain arbitrage: “It seems that the industry’s leading figures were not entirely aware of how to manage liquidations; they did not seek to implement partial hard liquidations for my position on Curves. I ultimately had to handle the task independently.”

Egorov proposed the development of “open-source liquidation bots” and community education regarding liquidations in order to resolve the broader decentralized finance implications of the liquidation.”

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