Unchained What Does the Curve Crisis Say About DeFi? - Ep. 527
Aug 4, 2023
Sam Kazemian, founder of Frax Finance and a key figure in decentralized finance, delves into the recent Curve crisis and its implications for the DeFi landscape. He explains how a unique compiler bug led to a significant exploit, draining over $50 million and shaking confidence in major lending platforms. The conversation touches on accountability in the DeFi space, the need for better security practices, and innovative solutions like dynamic debt restructuring to prevent future crises.
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Compiler-Level Bug
- The Curve exploit was unique because it stemmed from a compiler-level bug in Viper.
- This means the code itself was correct, but it compiled incorrectly, leading to the vulnerability.
New Vulnerability Class
- The Curve exploit highlighted a new class of vulnerability: compiler-level bugs.
- It wasn't a typical coding error but an issue with how the code was translated into executable instructions.
Curve Founder's Loans
- Curve founder Michael Egorov took out large loans against his CRV tokens.
- A compiler bug in Curve drained liquidity and put Egorov at risk of liquidation.