An unknown developer has prematurely deployed decentralized finance (DeFi) project Curve tokens and contracts with an unexpected launch of its DAO and governance token CRV.
It has been reported that the developer tweeted from a brand new Twitter account, which he thought that the contracts were ready and had jumped the gun.
Yo, @CurveFinance ! Saw your DAO is ready to rock and I gots to MAXIMIZE MY ALPHA ! So I went ahead and deployed it for you. Get at me in DM to verify and lets get this party started!! pic.twitter.com/D0KqEg4Ldr — 0xc4ad (@0xc4ad) August 13, 2020
However, in a preliminary response, the Curve team confirmed that everything looked correct, and then spent the morning frantically verifying the contracts and deployment parameters.
Interesting. We are proceeding with caution here, so far looks like contracts are the correct ones, as well as the deployment parameters correspond to real ones (should verify though) — Curve (@CurveFinance) August 13, 2020
As per the report, seven hours after the early contract deployment, Curve announced the official launch on Telegram and Discord by confirming that the early deployment was verified and legitimate.
The post read:
“The Curve team is proud to announce that Curve Finance native token CRV has officially launched. The Curve DAO was deployed by a community member. The contracts have been thoroughly verified by the team to make sure they follow the correct deployment process.”
Likewise, the team has also confirmed that the user relinquished any admin powers. Shortly after the announcement, Curve further explained that although initially skeptical, the deployment was completed with the “correct code, data and admin keys” and they had no choice but to accept it, pushing forward the launch even though the official UI was not yet ready.
Someone deployed $CRV based on smart contracts we had published on github, front-running our efforts. While we initially were skeptical, it appeared to be an acceptable deployment with correct code, data and admin keys. Due to the token/DAO getting traction, we had to adopt it. — Curve (@CurveFinance) August 14, 2020
Curve added:
“Due to the token/DAO getting traction, we had to adopt it. […] The launch has happened.”
Curve is a decentralized exchange liquidity pool built on Ethereum, which allows for efficient and low-cost trading of stablecoins. Curve states their fees are only 0.04% of any trade.
In light of the developments and the unexpected launch, Poloniex announced trading for the CRV/USDT trading pair just seven minutes after the official launch.
Well… that was unexpected 😅 New #DeFi Listing: @CurveFinance$CRV wallets are open now and you can begin depositing and posting limit orders for CRV/USDT Deposit: https://t.co/6aJqw60Lbe CRV/USDT: https://t.co/JenrMQOVOZhttps://t.co/RYXbv0DnKH pic.twitter.com/xBDNfqRw9q — Poloniex Exchange (@Poloniex) August 14, 2020
Binance has also said that it will list the CRV token by stating that although deposits are open, trading will not commence until “deposits have reached a level sufficient enough to ensure healthy market dynamics.”
It has been analyzed that the contracts were available for deployment due to the fact that they were published open-source on Github by allowing anyone to see the code and deploy it on Ethereum.
Curve probably assumed no one would wish to front the deployment costs of more than $8,000 (19.9 ETH) in fees.
The Curve project lead shared his support for community engagement on the team’s Discord channel:
“I think it’s kinda cool personally.”
Thus, some of the project’s community members have raised concerns about the fairness of the launch with popular influencer Boxmining saying:
“So you invalidated a frontrunning attempt?? This makes zero sense .. This will taint your launch…”
Source: Cointelegraph | Image: Crypto Briefing