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.

38:28

Creator website

Episode guests

Sam Kazemian

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Episode notes

Intro

2min

Compiler-Level Vulnerabilities in DeFi: The Curve Hack Explained

3min

DeFi Security Crisis: Analyzing the Curve Protocol Breach

11min

Resolution of the Curve Crisis and Its Implications for DeFi

4min

Navigating Accountability in DeFi

7min

Weekly News Recap: Crypto Legal Battles and Developments

4min

Legal Turmoil in Cryptocurrency

8min

While it’s now mostly contained, the Curve crisis has exposed some of the systemic risks in the world of DeFi. Sam Kazemian, founder of Frax Finance, joins the show to discuss what DeFi needs to do to get better – and what builders should learn from a novel attack that was ultimately about much more than $50 million in drained funds.

Listen to the episode on Apple Podcasts, Spotify, Overcast, Podcast Addict, Pocket Casts, Stitcher, Castbox, Google Podcasts, Amazon Music, or on your favorite podcast platform.

Show highlights:

how the Curve exploit occurred and why this hack is different
how the attack triggered a crisis in major lending platforms like Aave, Fraxlend, and Abracadabra
what Curve founder Michael Egorov’s solution was to the potential liquidation of his several loans
whether this situation proves that DeFi is not as good as promised
what can be done to prevent these kinds of issues in the future, particularly with large loans in DeFi that could potentially bring down the ecosystem

Thank you to our sponsors!

Guest

Sam Kazemian, founder of Frax Finance

Links

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