• Due to a vulnerability, Convex Finance was forced to redeploy its smart contract

  • After discovering a problem in the smart contract, Convex Finance was obliged to free its vote-locked CVX coins. According to the team, this was a non-critical bug that had no impact on users’ finances.

    The flaw in question allowed “expired locks to relock directly to a fresh address, allowing them to claim more cvxCRV rewards than they had earned.”

    Popcorn, a revenue generator that also sponsors social impact programs, identified the Convex Finance issue. In exchange, it will receive bounty prizes.

    The contract had to be redeployed and all tokens unlocked due to a fault in its vICVX incentive mechanism. Users that voted locked their CVX tokens will have to withdraw and relook at them in the new contract in order to continue reaping the benefits.

    Because smart contracts are “immutable and non-upgradable,” the team was unable to simply repair the flaw. As a result, the decision was made to cancel the contract and start over.

    The Convex Finance protocol enables customers to receive greater rewards from Curve, an automated market maker. It is, however, not the only protocol that provides this functionality.

    Several systems are fighting for veCRV, the Curve platform’s governance token. Curve is now the decentralized platform with the highest TVL.

    Convex allows users to keep liquidity by employing a one-of-a-kind system in which it issues cvxCRV tokens after locking CRV. As a result, it has become one of the best performing procedures in the Curve Wars. Its TVL is currently worth more than $12 billion.

    CVX holders can participate in the protocol’s governance and gain rewards by using vote locked tokens.

    The decision to redeploy had an impact on the CVX token, which declined by more than 10% in the last 24 hours. This is due to the fact that users will now have to relock their tokens for at least 16 weeks before they may collect incentives.

    Many users, however, have already relocked their tokens. Large holders are also increasing their holdings, implying that the tokens could recover swiftly again. The fragility of smart contracts remains a big concern for DeFi, whose TVL is currently well over $200 billion.

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