Several Curve Finance liquidity pools were attacked on July 30 due to a vulnerability found in the programming language Vyper. Vyper is a contract programming language created for the Ethereum Virtual Machine (EVM).
Curve Finance is one of the key decentralized finance (DeFi) protocol due to the key liquidity services it offers, thus the code vulnerability has put nearly $100 million worth of digital assets at risk.
The vulnerability was found in the version 0.2.15, 0.2.16 and 0.3.0 leading to a malfunctioning reentrancy lock. As a result, millions were drained from four Curve pools namely aETH/ETH, msETH/ETH, pETH/ETH and CRV/ETH. The flaw in three of its variants may have an effect on a number of other protocols.
Please note that this reentrancy issue is associated with the use of ‘use_eth’, which could potentially place the WETH-related pools in jeopardy! @CurveFinance , please DM us if you need any help. https://t.co/vjc1RRce7w pic.twitter.com/Wz8DXJZK7Y
— BlockSec (@BlockSecTeam) July 30, 2023
The price of the native token of Curve Finance (CRV) collapsed on the DeFi market due to the significant draining of several of its pools, however, it was eventually saved by the centralized exchange price feed. CRV price hit $0.086 on decentralized exchanges (DEX) but was trading at $0.60 on centralized exchanges (CEX), thus saving the price of the native token from collapsing to zero.
Related: Pro-XRP lawyer claims SEC prioritizes corporate capitalism over investors
Curve pools use Chainlink’s oracle system that incorporates several price feeds including centralized exchanges as well. If not for the CEX price feed the Curve Finance would have collapsed. This ironic incident drew the attention of Binance CEO Changpeng Zhao as well who chuckled at the fact that in the end, it was a Cex price feed that saved the DeFi ecosystem.
Zho noted that Binane was not impacted by the Vyper vulnerability as the crypto exchange has updated the code to the latest version and reminded everyone of the importance of code libraries upgradation.
CEX price feed saves DeFi. ♂️
Binance users are not affected. Our team checked on the Vyper Reentrant Vulnerability. We only use version 0.3.7 or above.
It’s important to stay up-to-date with code libraries, apps and OS. And stay #SAFU https://t.co/0GFv86KP9R
— CZ Binance (@cz_binance) July 31, 2023
The bug in the earlier versions of the Vyper code is believed to be at least 1.5 years old and the exploiter is believed to…
Click Here to Read the Full Original Article at Cointelegraph.com News…
