TL;DR
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Hackers have found an exploit in Curve, the decentralized crypto lending platform.
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A total of $100 million worth of crypto is at risk, with an estimated $50 million stolen at the time of writing.
Full story
Automation works… until it stops working.
This lending story from Curve is a good example of that.
If you are not familiar with Curve, it is a decentralized cryptocurrency lending platform.
In short, people (lenders) send their crypto to Curve and for a healthy fee of 4% per year others (borrowers) can take out that crypto as a loan.
Two things you should know here:
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The crypto these lenders send to Curve is held in ‘pools’
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And the entire lending process is fully automated by smart contracts (aka lines of code) instead of intermediaries.
That is awesome!
…but the downside is, if there’s a problem, there’s no hotline to call.
And right now there is a problem. A big problem.
Hackers have found a bug that gives them instant access to massive lending pools, and a total $100 million worth of crypto is at risk, with an estimated $50 million stolen at the time of writing.
Stay safe out there folks!