Welcome to The Hedge!
Four Curve Finance pools were affected by an exploit on 30 July. In this week’s issue, we provide information on the claims filing and assessment process. We also want to highlight the education phase of the tokenomics parameter discussion—be sure to review the summary in this issue and attend the office hours if you have questions! We have other updates to share, as well.
Let's dive in.
Curve Finance Loss Event: Everything you should know about the upcoming claims filing
On 30 July 2023, four Curve Finance pools were exploited due to a vulnerability found in the Vyper codebase versions 0.2.15, 0.2.16, and 0.3.0. For a detailed analysis of the exploit, you can refer to BraveNewDeFi's Twitter summary.
At the time of the exploit, there were four active Curve Finance Protocol Covers with total liabilities amount of $6.6 million, which accounts for 2.4% of the capital pool holdings.
Now that the 72-hour cool-down period is over, members can submit claim requests, if they were affected, but we recommend members wait to file claims until more information is available, so Claim Assessors can accurately determine loss and factor in potential reimbursement amounts.
BraveNewDeFi outlines all the necessary steps and points to the relevant resources in the following forum posts:
Curve Finance Loss Event (30 July 2023) | Claim Assessment Guide
Curve Finance Covers and Claims Tracker | 30 July 2023 Incident
Members who have questions about determining their loss or anything related to filing a claim request can head to the Nexus Mutual Discord, go to the Open A Ticket channel, and open a support ticket.
The Curve Finance exploit is a reminder that no matter how battle tested a protocol’s smart contracts are, it only takes one vulnerability to cause a major loss. In the latest edition of The Hedge, we reviewed some of the major risks associated with DeFi and specifically highlighted Nexus Mutual's Protocol Cover as an exceptionally efficient way to protect against re-entrancy vulnerabilities—like the one that affected Curve—and other risks.
Within just one week, we were swiftly reminded of the potential hazards that come with depositing funds in DeFi protocols. It is crucial to acknowledge that these risks are an inherent part of a transparent and trustless ecosystem. In light of this reality, we firmly believe that DeFi users must come together to share risk and protect themselves against hacks and exploits.
Changes to The Hedge’s format and frequency
The Nexus Mutual DAO Community team consistently seeks better ways to engage with our members and facilitate effective conversations about the future of risk sharing. To achieve this, we primarily utilize The Hedge newsletter to provide a transparent overview of the operations at the Nexus Mutual DAO and to foster seamless interactions among various stakeholders, ranging from institutional users to long-time enthusiasts.
This marks the final weekly issue of The Hedge. Starting from this month, we will transition to a monthly publication schedule. Additionally, we'll continue to share the weekly analysis on the forum, which will be published every Monday. On Tuesdays, we will share a shorter, easy-to-digest summary of recent happenings and action items within the Nexus Mutual governance and the overall landscape.
Don't forget to follow Nexus Mutual DAO on Twitter for regular updates!
The Latest in Nexus Mutual Governance
Below are the summarized next steps of the community discussions on the Nexus Mutual Governance Forum:
Tokenomics
Rei shared the most recent update on new tokenomics progress in his 31 July update on the forum.
As shared in the last issue of The Hedge, please find out more on the project’s planned progress in BraveNewDeFi’s Pre-Discussion Phase: RAMM Education Guide, Call for Questions post on the forum.
Rei and BraveNewDeFi will be available during Office Hours, which are held in the Community Calls channel on the Nexus Mutual Discord every Tuesday and Thursday from 3:00 pm UTC to 3:30 pm UTC for the next week.
Review the RAMM education guide and join in to ask any open questions during Office Hours!
Weekly Analysis
Find this week’s analysis on the Nexus Mutual governance forum.
Up Next
Don’t forget to follow the Nexus Mutual Twitter account and Nexus Mutual Lens account for regular updates and announcements from the mutual.
Join us for our next community call on Tuesday (8 August) in the Nexus Mutual Discord! We’ll share the latest updates and provide an open forum for members.
Have a great week!
Resources
Nexus Mutual is fully transparent. You can verify the information within this newsletter and learn more about the mutual through the resources below.
Nexus Mutual’s community is most active on Discord. You may reach our team with any questions through LinkedIn and Discord.