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Tag: UwU Lend

  • CRV Price Plunges 25% Following Curve Finance Founder’s Multi-Million Liquidation

    CRV Price Plunges 25% Following Curve Finance Founder’s Multi-Million Liquidation

    The founder of Curve Finance, Michael Egorov, experienced liquidation on several multi-million dollar positions, causing a significant decline in the price of the CRV token. The token’s price plummeted by 25% on June 13, with losses reaching up to 30% at one point. As of press time, CRV is trading at an all-time low of $0.25, according to data from CoinGecko.

    The Liquidation Event

    Michael Egorov’s liquidations were due to high-stake positions backed by CRV as collateral. According to Lookonchain, Egorov has over 111 million CRV tokens used as collateral and more than $20 million in debt across several platforms, including Inverse, Frax Finance, and UwU Lend.

     

    In response to CRV’s sharp decline, Frax Finance stated in an X post that “there is zero bad debt on Fraxlend due to our partial liquidation, DDR, isolated lending design.” Data from blockchain forensics firm Arkham Intelligence indicates that three of Egorov’s accounts constitute over 90% of the borrowed crvUSD on the protocol.

    Market Reaction

    Centralized cryptocurrency exchanges are seeing a surge in CRV deposits, with their CRV balances reaching an all-time high, increasing by 57%, as noted by CryptoQuant’s founder Ki Young Ju.

     

    Curve Finance, founded in 2020, raised millions from its backers to facilitate efficient stablecoin trading through its automated market maker platform. The project was backed by notable investors, including Binance Labs, Platinum Capital VC, WhiteBlock Ventures, and Cluster Capital, according to data from PitchBook.

  • 0xSifu Offers 20% Bounty to Hackers After $19 Million UwU Lend Exploit

    0xSifu Offers 20% Bounty to Hackers After $19 Million UwU Lend Exploit

    DeFi protocol UwU Lend, founded by QuadrigaCX co-founder Michael Patryn, also known as “0xSifu,” recently lost over $19 million in a flash loan attack.

    The Exploit

    The incident occurred on Monday, when blockchain security firm Cyvers alerted users to the hack, noting an initial loss of around $14 million. Shortly thereafter, blockchain analytics firm Arkham estimated the total loss to be closer to $19.3 million. UwU Lend subsequently paused its protocol to investigate the situation.

     

    Blockchain security firm Beosin identified the attacker used a flash loan to manipulate the prices of stablecoins USDe and sUSDe. Matthew Jiang from Blocksec suggested that the exploit stemmed from an improperly designed blockchain Oracle.

    Response from 0xSifu

    0xSifu, who founded UwU Lend in September 2022, sent a blockchain message to the hacker offering a 20% bounty on any funds taken, provided 80% of the stolen funds are returned. Sifu assured the hacker that they would face no legal repercussions if they complied by June 12 at 17:00 UTC. He also warned that if the hacker did not cooperate, the bounty would be extended to the public to identify the hacker for prosecution.

     

    Interestingly, the hacker deposited much of the stolen funds into Curve Finance’s Llama Lend protocol, which was then used to borrow crvUSD. Curve Finance managed to liquidate the hacker’s position, successfully concluding what they termed an “unprecedented (and unplanned) test of LlamaLend resiliency.”

    Background on 0xSifu

    Michael Patryn, better known as 0xSifu, is infamous for his association with the collapsed crypto exchange QuadrigaCX. He resurfaced in the crypto world as the treasurer of Wonderland DAO but was ousted after being doxxed by blockchain sleuth ZachXBT. Following his removal, Sifu began sending funds to Tornado Cash, leading to speculation about the ownership of these funds.

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