On Monday, an issue with UwU Lend led to a lot of money being lost on Curve, a well-known DeFi lending platform. Representatives for Michael Egorov, the founder of Curve, confirmed this on Friday during a chat with CoinDesk.

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• Curve, a major player in Decentralized Finance, aims to be the safest lending platform even after some asset sell-offs caused by a breach in UwU Lend.
• Michael Egorov, the founder, saw his $100 million loans start to auto-liquidate, which led to a significant drop in the price of Curve’s CRV tokens.
• Even though things are hard, Egorov is staying hopeful. He thinks this tough time might improve Curve’s safety features and ability to provide loans! This could make it more fun and easy for people to use.

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Curve, a DeFi Powerhouse, Aims to Be the ‘Safest’ Lending Platform, Founder Asserts

Egorov had borrowed $100 million using special tokens from Curve. But on Thursday, these loans started to pay off on their own, causing the value of the tokens to decrease by nearly 30% before it bounced back a bit.

The problem of bad debt and the resulting liquidations can be traced back to UwU Lend, a cryptocurrency system that allows people to lend, borrow, and stake tokens.

“On April 15, UwU Lend used some faulty code for its new markets, which caused a risk to the entire platform,” Egorov explained. “UwU was hacked, and the hacker deposited stolen tokens into lend. Curve.fi (LlamaLend) and then disappeared with the money, leaving a lot of debt behind.”

UwU Lend lost $20 million to a flash loan attack on Monday and another $3.7 million on Thursday in a separate attack. UwU Lend offers a $5 million bounty reward to catch the perpetrators.

In a post, Egorov estimated the bad debt in a CRV lending pool at $10 million. While this market is isolated from other lending pools, depositors cannot withdraw their funds due to the existing bad debt.

But Egorov sees a silver lining. He thinks this tough situation could improve Curve’s safety measures and loan methods, which would benefit users. Our system was tested in really tough conditions yesterday,” Egorov shared. “We have much to look into but know how to make the safest and strongest lending platform ever.

I’m dedicated to ensuring all users can get their deposits back without issues. The Curve Finance community is most important to me,” Egorov added. According to DefiLlama, Curve is one of the top crypto platforms as of Friday, with over $2 billion in locked assets.

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