The 2022 Wintermute hack provided 28% of the liquidity in Curve Finance’s stablecoin liquidity pool with stolen funds.
According to Etherscan, the hacker contributes about $114 million of the $409 million behind Curve’s 3pool.
Wintermute scalper revives the DeFi debate
The hacker receives a huge fee chip as the main liquidity provider when Curve users exchange tokens provided by the criminal.
Groups like Curve enable token swaps through market making algorithms rather than brokers. Liquidity providers earn large fees by depositing tokens with high trading volumes, which offsets small fluctuations in the price of the token determined by the algorithm.
In its smart contract, Curve’s 3pool allows swaps between USDC, USDT and DAI. The immutability of a smart contract means that a swap or deposit cannot be cancelled.
This irreversibility means that criminals can benefit from the stolen funds without resorting to the victim.
Curve founder Michael Egorov He says Nobody can stop the hacker from providing liquidity because the pool is not authorized. Moreover, curve Argues Even the voices of governance cannot change any smart contract that contains money.
Earlier this year, a UK court ordered Oasis to rewrite its code to recover money from an earlier hack. Oasis has developed a front-end implementation of a stable, decentralized DAI. The move was controversial because DeFi principles dictate that funds cannot leave users’ wallets unless they sign a payment with their private key.
USDC Market Capitalization Treasurys $13 Billion Amid Banking Crisis
One of the stablecoins in the Curve pool, USDC, can now be transferred between networks using the Circuit Source cross-chain transfer protocol. The new method enables USDC transfers between Avalanche and Ethereum by burning USDC on the source blockchain and minting it on the new block.
The new technology comes amid a crisis of confidence in the US banking sector and an uncertain regulatory climate. Contribute This led to a decrease of $13 billion in the market value of the currency to $30.71 billion. CoinGecko pegged the coin’s maximum market cap at $56 billion on June 20, 2022.
Political divisions have slowed the passage of US crypto legislation. This regulatory quagmire has seen crypto companies like Coinbase express interest in moving into areas with clearer laws.
For a recent Be (In) Crypto Bitcoin (BTC) analysis, click here.
Disclaimer
Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.
