DeFi Protocol Convergence Hacked, CVG Token Plunges 99% on Curve

Decentralized
finance
protocol
Convergence,
a
Curve-based
yield-enhancing
protocol,
a
was
exploited
Thursday,
sending
its
token’s
price
to
near-zero.

The
attacker
created
(minted)
58
million
of
the
protocol’s
CVG
token
using
a
vulnerability
in
the
protocol’s
codebase,
and
swapped
the
tokens
for
60
wrapped
ether
(wETH)
and
15,900
crvFRAX
stablecoin
using
liquidity
pools
on
Curve,
web3
security
auditing
firm
QuillAudits
said.

Blockchain
data
on

Etherscan
shows
that
the
attacker’s
address
converted
the
funds
to
ether

(ETH)
and
sent
the
tokens
to
Tornado
Cash.

The
attack
caused
about
$210,000
loss,
QuillAudits
added.

CVG
holders,
however,
suffered
additional
damage
as
the
token’s

$17
million
fully
diluted
value
(FDV)
before
the
attack
evaporated.
CVG’s
price
declined
99%
in
the
Curve
liquidity
pools,
nosediving
to
$0,0004
from
trading
around
$0.12
earlier
today.

Convergence
asked
users
not
to
interact
with
the
protocol.