Select members of the protocol’s governing body voted to end CRV governance rewards for liquidity pools affected by recent exploits.
Photo by Shubham Dhage on Unsplash
Posted Aug 2, 2023 at 9:20pm EST.
Decentralized Autonomous Emergency Organization Curve Finance (E-DAO) has voted to scrap CRV rewards for alETH, msETH, pETH, crvCRVETH, Arbitrum Tricrypto, and Multi-BTC pools.
Gabirel Shapiro, General Counsel at Delphi Labs and a member of the protocol’s E-DAO, informed users of the promotion in a tweet on August 2, explaining that the discontinuation of the rewards was to further incentivize participation in the Vyper affected pools to avoid multichain exploits.
ATTENTION FROM A CURVE E-DAO SIGNER:
@CurveFinance’s emergency multisig has ended CRV rewards (meters) for the liquidity pools affected by the recent exploits, including the pools affected by the recent Vyper compiler exploit and the MultiBTC pool, affected by the recent exploits.
— _gabrielShapir0 (@lex_node) August 2, 2023
The E-DAO is a group of nine controlling a multisig with limited governance powers. These include the ability to shut down a pool that has been operating for less than two months if a bug is discovered, and end rewards for a pool that would push its participants to migrate elsewhere.
Last month it was more than $100 million withdrawn from the bridges of the multichain protocol in what appears to be an exploit that caused Curve to do so to warn Users are told to “leave multichain assets like multiBTC (including the pool).”
As of July 30, it was an estimated $52 million dehydrated of multiple DeFi protocols based on Curve’s stablepools running on vulnerable Vyper smart contracts.
Curve pools affected by these exploits continued to produce governance token rewards during this time, and users who deposited their tokens into them could continue to earn CRV.
Still, some blockchain users criticized the fact that there was no apparent documentation of the E-DAO’s powers, although its actions can be overridden by the Curve DAO.
Why isn’t it mentioned in the docs, only on a semi-hidden emergency page that specifically states that the only functionality is to call kill_me() , which “disables all functionality except retract”?
There is no mention of simply killing rewards to some extent pic.twitter.com/U2ADpK6okR
– tk (@tomkysar) August 2, 2023
“I just hope that as a more passive user of the protocol you can also understand that when I’m told that an emergency DAO can only do X and then Y, I’m wondering when it got these new powers and how. ” tweeted a Curve user.
Another member of the E-DAO, “@nagakingg”, acknowledged the user’s concerns as “fair enough” and said that the multisig’s powers are actually more limited than the document suggests.
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