According to the official news of Curve Finance on November 11, Curve Emergency DAO recently noticed the abnormal trend of CVX price. After joint research with Yearn and Convex, it was found that the abnormality was a governance attack initiated by Mochi protocol. Mochi used its own token (MOCHI) to bribe the votes in the CRV gauge, and incentivized the voting of its indicators through Convex until the pool reached $100 million in liquidity, and then minted a large number of tokens for itself. At this time, Mochi did not have a casting limit or set token economics. The newly minted MOCHI, which was set by the team itself with a custom price oracle, had an LTV of 90%. Subsequently, $46 million worth of USDM was minted in Curve, and the USDM was converted into DAI. Subsequently, DAI was used to purchase Ethereum and finally 105 CVX, which were locked. And 99.5% of the total amount of Mochi belongs to its “team”, which will mean that the USDM is insufficiently collateralized. At the same time, Mochi has serious security issues. The newly purchased CVX may be used to provide more liquidity to the USDM pool, ultimately creating more liquidity for the Mochi team, and selling their undercollateralized USDM to other uninformed token pairs. Since this constitutes an obvious governance attack, and Curve Emergency DAO believes that the token pairs in the pool are in danger, it decided to close the USDM gauge to immediately stop receiving CRV output.
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