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Cryptoverse in Chaos: Giants Race for New DeFi Darling, Curve, Yam Plots Comeback

The governance token CRV of Curve, exchange liquidity pool on Ethereum (ETH), was launched prematurely by an anonymous ‘Chad,’ and major exchanges moved to list it, as numerous theories are flying around, while YAM announced its transition to 2.0. This all happened in a matter of hours.

The Cryptoverse went from Yamming straight to Curving in less than a day, as one industry observer summarised the situation.

Curve’s smart contract for the token was available for all to see on GitHub, a software development platform. An anonymous developer decided to pay the ETH 19.9 (USD 8,427) fee and go ahead and deploy “the most anticipated DeFi project and the darling of yield farmers,” as Adam Cochran, Partner at decentralized autonomous organization Metacartel Ventures, described it.

In an unexpected twist, the team behind the Curve said they had to adopt it, which Cochran found “the worst possible choice [which] shattered significant trust in their team.” He also offered several possibilities of what might have happened, ranging from genius to scamy.

There is barely any liquidity, depth or circulating supply but at $20 CRV’s fully diluted market cap is $66 billion.

— Anthony Sassano | sassal.eth ‍ (@sassal0x) August 14, 2020

All this has led some, like Bitcoin evangelist at Kraken, Pierre Rochard, to wonder if the future of finance is front-running, and many seem to believe that this situation will be damaging for Curve. Furthermore, some say there is something “fishy” happening – Truffle Suite CEO Tim Coulter, for example, said that Curve Finance has the authority on which deployed contracts to use. “A quick “nope” would have directed everyone not to use it. In fact, you could have even earned some security street cred by directing the world not to trust random deployments claiming to be CRV,” he wrote.

Some fishy as hell stuff going on here.

Anyone can deploy code that points to your existing code doesn’t mean you need to use it.

I could deploy a copy of the CRV contracts saying existing LP tokens can deposit, wouldn’t make it official….

— Adam Cochran (@AdamScochran) August 14, 2020

And then, as a cherry on top of a cake in an open-air circus on a scorching hot summer day, major crypto exchanges started listing the token. Binance announced that it would list CRV at the same time they were stressing the current “insanity” of DeFi – with some people claiming that the listing wasn’t discussed with the team, and the team reacting with “OMFG.”

You mean validated right ? Cause that’s exactly what happened. Highly suspicious.

— Thomas Zarebczan (@TomZarebczan) August 14, 2020


Everyday this week I’m like “oh my god, that’s bad!” and then the next day is somehow worse.

NUGS exit scamming. Yikes.

YAMS blowing up losing hundreds of millions of dollars. Holy shit, that’s bad.

CRV contract compromised and prelaunched ?? then adopted by the team? WTF!!!

— ฿ully (@BullyEsq) August 14, 2020


Lol 37k liquidity, broken UI on launch people cant claim. Yeah Ima go get some KFC and be back in an hour, not worth playing currently #CRV

— George Harrap (@George_harrap) August 14, 2020



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