Convex Finance must redeploy its smart contracts because of a vulnerability. After discovering a problem in the smart contract, Convex Finance was obliged to free its vote-locked CVX coins. This was a non-critical flaw, according to the staff, that had no impact on users’ finances.
The problem in question allowed “expired locks to relock directly to a new address, allowing them to claim more CVX rewards than they had earned,” according to the report.
Popcorn, a revenue generator that also sponsors social impact programs, identified the Convex Finance issue. It will be rewarded with bounty incentives in exchange.
The contract had to be redeployed and all tokens unlocked due to a fault in its vICVX incentive mechanism. Users who voted to lock their CVX tokens will need to withdraw them and reinvest them in the new contract in order to continue receiving rewards. The team claims it couldn’t simply repair the flaw because smart contracts are “immutable and non-upgradeable.” As a result, the decision was made to cancel the contract and start over.
The Convex Finance protocol enables consumers to profit more from Curve, an automated market maker. It is not, however, the only protocol that provides this functionality. Several systems are fighting for ve CRV, the Curve platform’s governance token. The curve is now the decentralized platform with the highest TVL.
Convex allows users to keep their liquidity by using a unique mechanism in which it issues CRV tokens after locking CRV. As a result, it has become one of the most effective methods in the Curve Wars. Its current TVL is about $12 billion.CVX token holders can participate in the protocol’s governance and receive incentives by voting locked tokens.
The price of Convex Finance is $17.88 USD today, with a 24-hour trading volume of $141,815,965 USD. In the last 24 hours, Convex Finance has lost 7.58 percent of its value. With a live market cap of $948,988,207 USD, now ranks #82. There are 53,076,872 CVX coins in circulation, with a total supply of 100,000,000 CVX coins. Because users must now relock their tokens for at least 16 weeks before receiving prizes, this is the case.
Many users, however, have already relocked their tokens. Large holders are also increasing their holdings, implying that the tokens could swiftly rebound. Smart contract security is a big concern for Defi, whose TVL has grown to well over $200 billion.
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