The Monday exploit of UwU Lend resulted in a series of events that led to Michael Egorov's $100 million loans from various protocols being automatically liquidated, causing the CRV token to drop by up to 30%.
The exploit of UwU Lend on Monday put in motion a series of events that led to Thursday’s multimillion liquidations on DeFi lending giant Curve, representatives for its founder Michael Egorov told CoinDesk over Telegram messages on Friday. The catalyst for the bad debt and liquidations has been traced back to UwU Lend, a crypto protocol that allows users to burrow, lend, and stake tokens.
In an X post, Egorov estimated bad debt in a particular CRV lending pool at $10 million. While this market is fully isolated from other lending pools, depositors in the CRV could not withdraw their funds as long as the bad debt existed.