The decentralized finance (DeFi) Curve Finance has decided to pay back the liquidity providers (LPs) that were hacked for $61 million in July.
The disbursement of tokens worth over $49.2 million to offset the losses of the Curve (CRV), JPEG’d (JPEG), Alchemix (ALCX), and Metronome (MET) pools was approved by 94% of tokenholders on December 21, according to on-chain data.
The quantity of Ether and CRV tokens in the pools before the hack is taken into account when calculating losses, as is the amount of CRV emissions that were not delivered to LPs throughout the previous several months.
As per Curve’s plan, the Curve DAO (CRV) tokens will be sourced from the community fund. A deduction for the tokens that have been found since the occurrence is also included in the total.
According to the proposal, “The overall ETH to recover was calculated as 5919.2226 ETH, the CRV to recover was calculated as 34,733,171.51 CRV and the total to distribute was calculated as 55’544’782.73 CRV.”
Due to worries about the exploit’s potential effects on the cryptocurrency ecosystem, a stress test of multiple DeFi protocols was conducted in the days that followed the security incident on July 30.
Curve’s total value locked (TVL) reached close to $4 billion in July. The impacted pools included CRV/ETH, msETH/ETH, pETH/ETH, and alETH/ETH.
According to Curve’s proposal, “While stolen funds in each pool were either completely or partially recovered, MEV bots have left all affected pools with a shortfall, and this remediation proposal seeks to make affected LPs whole.”
Also Read: White Hat Restores $5.4M to Curve Finance in $47M DeFi Hack
