DeFi Ventures with $1.2 billion Worth Locked Tokens have Key Administration Problem August 25, 2020 August 25, 2020 Kelly Cromley http://1AZFjzw2#Nwf63pYaMWq#xIY
Market NewsAugust 25, 2020 by Kelly Cromley

DeFi Ventures with $1.2 billion Worth Locked Tokens have Key Administration Problem

DeFi covenant, Curve Finance, is the third largest with over $1.10 billion worth (TLV or total locked value) tokens locked in the project. In the past few days, the community noticed that Michael Egorov, the venture’s founder, had 71% voting rights.

This caused adverse reaction from the community. Andre Cronje, the founder of popular DeFi covenant yEarn.Finance highlighted the disparity through a tweet:

The next voting related to the protocol is scheduled for August 28. Egorov, at the time of writing this article, has a voting power of over 50%.

A week before, when YFValue was rolled out, it had an ingrained vulnerability that would have permitted its developers to permanently freeze users’ staked tokens. This reminded about Yam.Finance, which was rolled out with a comparable problem, even though YFValue’s vulnerability does not seem to be that severe.

As YFValue began to rollout next day, it tabled a self-centered mining chance for a handful of “clever” members of the group:

Nevertheless, intelligent members of the group identified the issue and benefited by carrying on with farming in pool 0 in spite of caution and deletion of the frontend UI. As there was no other way to halt the process, the core team went ahead and burned the minter key. “This key burn would cause tx failure at checkNextEpoch (08/24/2020 @ 7:52am (UTC), an event which we hoped would serve as a deterrent.”

With the aforesaid burning of minter key, those who continue to retain their funds from the specific pool before the time limit could lose their tokens once and for all.

AuthorKelly Cromley

Kelly is our in house crytpto researcher, delving into the stories which matter from blockchains being used in the real world to new ico coming out.