The crypto winter has not spared anybody. Investors, crypto exchanges, and decentralized finance ecosystems have all become casualties. Curve Finance, an automated market maker that allows users to trade currencies on their Web sites, took to Twitter yesterday to advise customers about an exploit on its site. According to the protocol’s developers, the problem, which appeared to be a hostile actor’s attack, was affecting the service’s nameserver and front-end.
According to a screenshot of the protocol’s wallet shared on Twitter, hackers stole approximately $570,000 from the decentralized finance protocol Curve Finance. A distinct service – appeared not to be affected by the assault since it used a separate domain name system (DNS) supplier. Shortly after, the protocol operators announced via Telegram that they had identified and fixed the source of the problem. Curve Finance advised investors who had agreed to any contracts in the previous few hours to withdraw them immediately.
Users are advised to use curve.exchange instead of the deprecated curve.fi until the spread of the curve.fi normalizes. Curve Finance speculates that Iwantmyname’s DNS server was hacked, stating that it has subsequently altered its nameserver. A nameserver acts as a directory, translating domain names into IP addresses.
Analysts were bullish on Curve Finance in July, despite declining the market, which impacts the broader DeFi space. According to Delphi Digital’s experts, their optimism was the platform’s yield possibilities, CRV demand, and protocol income from stablecoin liquidity. The launch of a new “algorithm for exchanging volatile assets” in June, followed by a promise to enable low-slippage swaps between “volatile” assets, has caused another stir on the crypto scene.
If web 3.0 is to be regarded as the new Internet, DeFi is its financial ecosystem. Of course, there are dangers associated with decentralized finance. The bad news is that $2 billion has been lost to hacks, scams, and exploits thus far in 2022, including another $570 as of today. The good news, if you can call it that: Falling crypto prices might have deterred hackers and customers alike, with the rate of losses slowing in the second quarter.