TL;DR
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Hackers have found an exploit in Curve, the decentralized crypto lending platform.
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A total of $100M worth of crypto is at risk, with an estimated $50M having been stolen as of this writing.
Full Story
Automation works…until it doesn’t.
This Curve lending story is a prime example of that.
If you’re not familiar with Curve, it’s a decentralized crypto lending platform.
Basically, folks (lenders) send their crypto to Curve and for a healthy 4% p/y fee, others (borrowers) can take that crypto out as a loan.
Two things you need to know here:
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The crypto that these lenders send to Curve is kept in ‘pools’
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And the entire lending process is fully automated by smart contracts (aka lines of code) instead of middlemen.
Which is cool!
…but the downside is: if there’s a problem, there’s no customer service hotline to call.
And right now, there’s a problem. A big problem.
Hackers have found a bug that’s giving them direct access to massive lending pools, and a total of $100M worth of crypto is at risk, with an estimated $50M having been stolen as of this writing.
Stay safe out there folks!
