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Curve DAO (CRV) up 7%, Is Curve Out of the Woods?

Thu, 08/03/2023 - 16:20
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Godfrey Benjamin
Curve DAO recorded slight recovery after weeklong onslaught post-hack
Curve DAO (CRV) up 7%, Is Curve Out of the Woods?
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It has been a few days since decentralized finance (DeFi) protocol Curve Finance suffered a major attack that saw as much as $50 million drained from its coffers and, for the first time, its native token CRV is on a bullish run. Per data from CoinMarketCap, CRV is trading at a price of $0.5888, up by as much as 7.2% over the past 24 hours at the time of writing.

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Curve remediation efforts

The current uptrend of Curve DAO has not negated the week-to-date (WTD) losses, which are pegged at more than 20%. The hack of Curve DAO is one of the biggest DeFi exploits in recent times, but the current growth appears to be suggesting that the protocol might finally be out of the woods.

Curve founder Michael Egorov has been on the front page all week long with unfettered efforts to raise funds in a bid to help restore the liquidity that was drained from the platform. The last transaction by Egorov, according to crypto analytics service provider Lookonchain, is the sale of a total of 72 million CRV tokens to 15 institutions or investors through OTC at a price of $0.4.

For these sales, Egorov received the sum of $28.8 million to repay some of the debts he took on since the Curve protocol was exploited. At this time, he currently has 374.18 million CRV (worth a total of $220.4 million) in collateral and a total of $79 million in debt on five platforms.

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Where doubt sets in

There is no doubt that the Curve founder has enough liquidity to offset his loans in a bid to restore normalcy to the platform. Some critics have faulted the fact that just one man has access to up to half of the total circulating supply of Curve.

The realization of what might befall the protocol based on this concentration risk is fueling concerns that CRV is technically not out of the woods.

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About the author

Godfrey Benjamin is an experienced crypto journalist whose main goal is to educate everyone around him about the prospects of Web 3.0. His love for crypto was birthed when, as a former banker, he discovered the obvious advantages of decentralized money over traditional payments. With his vast experience covering various aspects of Web3, Godfrey's articles has been featured on, Cryptonews and Coingape, among others.