The liquidation of CRV lending positions by Curve founder was triggered by a security incident at UwU Lend

ChainCatcher news, according to CoinDesk, Curve founder Michael Egorov's representative stated via Telegram on Friday that the vulnerability of UwU Lend on Monday triggered a series of events that led to significant liquidations at Curve on Thursday. Egorov began to face automatic liquidation of a $100 million loan obtained using Curve's CRV tokens as collateral from various protocols on Thursday, causing the token to drop by 30%, before briefly recovering.

Egorov stated, "On April 15, UwU Lend deployed vulnerable code for the sUSDe market, and these markets are not isolated, so the entire platform bore the risk. UwU was hacked, and as part of the cash-out activity, the hacker deposited the CRV stolen from UwU into lending.curve.fi (Llama Lend), then disappeared with the funds, leaving the debt in the system."

Egorov estimated that the bad debt in a specific CRV lending pool amounts to $10 million (93% has been repaid). Although this market is completely isolated from other lending pools, as long as bad debt exists, CRV depositors cannot withdraw their funds. However, Egorov mentioned that this situation might help strengthen Curve's security measures and lending mechanisms, potentially providing better services to users in the coming months.