Crypto NewsAltcoinNew Development in Curve DAO (CRV): CRV Will Be Distributed to Hack...

New Development in Curve DAO (CRV): CRV Will Be Distributed to Hack Victims – How Much Extra CRV Will Be Deployed?

Following the hacking incident last summer, it was announced that compensation would be paid to Curve DAO hack victims.

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The community behind the Curve DAO (CRV) protocol has agreed to pay $44 million in compensation to victims of the July hack. Compensation will be in the form of Curve's CRV tokens.

DeFi exchange Curve Finance suffered a major attack in July, where $61 million was stolen from multiple Ethereum trading pools. The attack didn't just affect Curve; It also hit NFT lending protocol JPEG'd and DeFi lending platform Alchemix.

Although a significant portion of the stolen funds were recovered, liquidity providers (LPs) continued to suffer serious losses due to the activities of trading bots. The attack caused panic, causing $1.5 billion to be withdrawn from several Curve pools and leaving LPs facing significant shortfalls.

Liquidity providers play a very important role in exchanges like Curve. By supplying cryptocurrencies to trading pools, they enable other users to trade on the platforms. In return, LPs are rewarded with token emissions, a share of fees, or both.

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In the first stage, the locked CRV compensation of $44 million will be gradually distributed to the victims on a linear basis over a year. This is because the funds were withdrawn from the DAO's Community Fund, whose contract imposes a vesting of at least one year on CRV tokens withdrawn from the pool.

Over the one-year linear vesting period, 196,626.29 CRV tokens will be issued per day, which will be equivalent to approximately $121,000 in daily CRV emissions based on the token's current spot price.

However, because CRV is a volatile asset, LPs have no guarantee that they will be fully compensated at the end of the vesting period, at least in dollars.

*This is not investment advice.

Buradaki Yorumlardan Bildirim Al

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