Curve Finance Founder Invests $1 Million in Conic to Aid Post-Exploit Recovery
In a bid to help recover from a recent exploit, Curve Finance founder Michael Egorov has invested $1 million into Conic Finance.
Curve Finance Founder Invests $1 Million in Conic to Aid Post-Exploit Recovery
The team at Conic Finance announced the financial support from Michael Egorov on their Twitter account:
We are pleased to announce that Conic has raised $1m from Curve founder @newmichwill
— Conic Finance (@ConicFinance) July 30, 2023
Read the full announcement: https://t.co/vs67pnRblU
A week ago, on July 21, Conic Finance suffered an exploit resulting in a loss of 1,700 ETH. The vulnerability was traced back to the CurveLPOracleV2 contract.
Curve Finance quickly clarified that despite the contract's name, CurveLPOracleV2 was entirely developed by Conic's team. The exploit was due to a configuration error, not an issue with the algorithm itself.
Maybe worth clarifying that CurveLPOracleV2 is a contract which is written by Conic, measuring value of LP tokens.
— Curve Finance (@CurveFinance) July 21, 2023
Also seemingly it's not the algorithm which they wrote being incorrect but rather configuration.
In response to the exploit, Conic proposed suspending CNC token rewards for Omnipools, which were temporarily halted to prevent further asset drainage. The funds saved from this suspension were redirected to Conic's Treasury for future contingencies.
Conic Finance is a liquidity support protocol that operates on the Curve Finance platform. It enhances Curve Finance's operations by participating in "Curve Wars," accumulating voting power, and generating higher yields for users.
Michael Egorov's latest investment is seen as an urgent lifeline to help Conic Finance quickly recover from the exploit's aftermath.
Background on the Exploit
On July 21, Conic Finance was exploited due to a vulnerability in the CurveLPOracleV2 contract, leading to a loss of 1,700 ETH. The exploit was a result of a configuration error in the contract developed by Conic.
Recovery Measures
In response to the exploit, Conic Finance proposed suspending CNC token rewards for Omnipools and redirecting the funds to their Treasury. The investment from Michael Egorov aims to further support Conic's recovery efforts.
Future Outlook
Conic Finance, as a liquidity support protocol on Curve Finance, will continue to participate in "Curve Wars," accumulate voting power, and generate higher yields for users. The support from Michael Egorov is expected to help Conic quickly address the exploit's impact and continue its operations effectively.
