Earlier this morning, Curve Finance said that in addition to multiple Ethereum pools over the weekend, an Arbitrum-based liquidity pool may also have been “potentially impacted.”
Curve Finance is a popular decentralized exchange (DEX), allowing users to trade similar assets like Ethereum for Stakes Ethereum or Tether’s USDT for Circle’s USDC. It can be a helpful arbitrage tool for many traders when the prices of these assets differ from each other.
According to initial reports, the platform was exploited for over $24 million on Sunday. However, blockchain security company PeckShield has updated the stolen amount to $52 million as the hack is happening in real-time.
The decentralized exchange team wrote in the tweet that there are three liquidity pools for paired tokens ether (ETH) and Curve governance tokens CRV, as well as several ERC-20 tokens issued on Alchemix (alETH), Metronome Synth (smETH) and JPEG’d (pETH) have been hacked due to an “issue in Vyper compiler” versions “.
Vyper is a programming language for writing smart contracts on the Ethereum blockchain. The core language team tweeted this morning that some older versions of the Vyper programming language were vulnerable to exploitation.
A lead author of the programming language also took to Twitter, saying the hackers would likely “spend weeks to months trying to find the vulnerability.”
The latest tweet from the Curve team highlighted another domino effect on the Vyper-based liquidity pool when deployed on Arbitrum’s Layer 2 solution. The team said that Tricrypto, consisting of three tokens: USDC, wBTC and ETH, was “potentially affected”.
The tweet said that while security experts such as auditors and Vyper developers have yet to figure out a way for a “profitable exploit,” the pools remain vulnerable, and advised liquidity providers to “get off this one.”
Elsewhere, another BNB chain based DEX Ellipsis has reported exploitation of stable swap pools on the BNB chain.
South Korean crypto exchange Upbit announced the temporary suspension of CRV token deposits and withdrawals as a precautionary measure.
The exchange wrote in the press release, “Upbit will continue to monitor this situation and members are advised to pay attention to Curve’s increasing price volatility.”
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