On-Chain Voting Commences for CRV Freeze Proposal on Aave v2 After Curve Finance Hack

On-Chain Voting Commences for CRV Freeze Proposal on Aave v2 After Curve Finance Hack

Crypto News – On August 15, the Aave community took a significant stride in enhancing risk management by initiating on-chain voting for a proposal aimed at freezing CRV on Aave v2 following the recent Curve Finance hack.

Scheduled to conclude on August 18, this proposal, reintroduced by DeFi risk manager Gauntlet, seeks to address the escalating concentration risk resulting from the continuous addition of CRV within the V2 market.

The decision to freeze CRV stems from concerns reminiscent of past instances, including proposals in November 2022, June, and August. The primary focus remains on the address beginning with 0x7a16, attributed to Curve founder Michael Egorov (Michwill).

Gauntlet’s steadfast rationale for freezing CRV aligns with their previous positions, aiming to mitigate concentration risks. In a statement, Gauntlet expressed:

“Our recommendation to freeze CRV collateral on Aave v2 aligns with our consistent stance against the increasing influx of CRV and the associated concentration risks.”

This announcement coincides with the turmoil in the DeFi space that emerged on July 30, triggered by reentrancy attacks exploiting vulnerabilities in various iterations of Vyper—a smart contract language designed for the Ethereum Virtual Machine (EVM).

Amidst this turmoil, Curve Finance managed to recover 70% of the $62 million that was taken from its liquidity pools during the reentrancy hack. The protocol committed to compensating users affected by the incident.

In a subsequent revelation, Curve disclosed that its arbitral-tri crypto pool was susceptible to the same vulnerability exploited in the July incident. However, the platform reassured its community that this pool is now free of potential vulnerabilities.