😨 DeFi Trembles Post Hack: DeFi Week of July 31

The Defiant

Weekly Recap

Happy weekend Defiers!The news cycle was dominated by the fallout from an exploit to the Vyper programming language this week. The exploit allowed hackers to siphon $70M worth of assets from Curve Finance Alchemix, Metronome, and JPEG’d. After the affected protocols put up a bounty, the attacker started returning the funds.

The attack sent CRV price plunging, which increased liquidation risk for Curve founder Michael Egorov's $90M worth of loans backed by CRV across various DeFi protocols. A further sharp decline in CRVs price down to $0.31 could liquidate Egorov's position. Curve’s founder frantically started to pay down his debts, including by selling claims to his CRV over-the-counter at a 40% discount compared to market value.

Elsewhere, it was a big week for Base, the hyped Layer 2 network from top U.S. centralized exchange, Coinbase. Base announced its “general access” mainnet launch will go live on August 9, following the network opening its doors to developers in mid-July. Base will launch front-end interfaces for bridges allowing lay users to migrate assets from Ethereum to the network, and kick off its promotional campaign, OnChain Summer.