Curve Finance TVL Plummets To 2-Year Low, Provides Post-Hack Update And Assures Fund Reimbursement

Curve Finance, the decentralized finance (DeFi) protocol that suffered a multi-million hack on July 30, has seen its total value locked (TVL) nosedive to a two-year low. Despite this, it has provided a post-hack update and assured customers that it would reimburse stolen funds.

Curve Finance suffered from an exploit that siphoned around $62 million in funds, and although the protocol was able to recover 70% of the total stolen assets, as the hacker voluntarily returned the funds, the devastating exploit marred its image.

Despite several attempts to salvage the DeFi, data from the multi-chain TVL stats dashboard DeFiLlama revealed that the TVL on Curve Protocol plummeted to its lowest level in two years, seeing a 24% drop since the hack and a 32% decline in TVL in the last month.

As of 4:30 a.m. ET on Monday, Curve Protocol's TVL was at $2.409 billion, underlining the gradual loss of confidence in the protocol after liquidity providers abandoned the project.

Aside from TVL, Curve's trading volume also dropped from $143 million prior to the exploit to just $100 million, based on data from Dune Analytics.

Crypto data aggregator Kaiko also confirmed that the hack has impacted confidence in Curve's stETH-ETH pool, which has seen continued large outflows, as well as a reduction in liquidity.

However, the DeFi protocol has to move forward despite all these misfortunes.

It offered the community a quick post-hack update on Aug. 11 and even assured its customers that it would reimburse their funds.

"While 70% of funds affected by the hack last week are recovered, active investigation with regards to the rest is underway," Curve said in a post on X.

"In the meantime, we are also working on measuring the respective shares of each affected user with the goal of proper distribution," it added.

On Aug. 3, Curve and other protocols impacted by the exploit pooled a bug bounty amounting to over $6 million, or equivalent to 10% of the total funds drained from the platform.

But since the hacker failed to return all the stolen funds before the deadline, the DeFi opened the bug bounty to the public and offered a reward for anyone who could successfully identify the malicious actor.

It is worth noting that the malicious actor posted a message seemingly directed at Alchemix and Curve protocols, noting that they were willing to return the funds not because the people involved could find them but because they said they did not want to "ruin" the projects involved.

As of 4:50 a.m. ET on Monday, Curve DAO Token (CRV) was trading down at $0.5852, with a 24-hour trading volume up by 3.18% at $47,222,338, representing a 0.09% decrease in the last 24 hours and a 4.48% loss over the past seven days.

Based on the latest data from CoinMarketCap, CRV's total circulating supply stands at 872,238,026 CRV, with its value down by 0.10% at a $510,451,639 market cap.