Key points to remember
- Curve Finance blocked broadcasts to another DeFi protocol, Mochi, following an alleged attempted governance attack.
- According to Curve, Mochi created his own native tokens in order to purchase and lock in large amounts of governance tokens from Curve, CLC.
- In response to the incident, Curve’s emergency DAO prevented Mochi from receiving any broadcasts he was owed.
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Curve Finance and Mochi Finance are in conflict after the latter allegedly tried to take advantage of DeFi’s governance mechanisms.
Curve says Mochi attempted an attack on governance
According to Curve, Mochi minted a large amount of his own MOCHI token and indirectly traded those tokens for ETH. With these funds, he bought a large number of Curve Governance Tokens (CVX).
Finally, against the warnings, Mochi locked down those CLC tokens, apparently in an effort to increase incentives for Mochi’s own pool of USDM factories. It would also provide more CLC rewards to Mochi.
Curve said that “this [constituted] a clear governance attack. As a result, Curve’s emergency DAO declared the liquidity providers at risk and blocked all further issuance of CLCs to Mochi.
While Curve Finance reports that the USDM Mochi plant pool has reached $ 100 million in cash, other sources suggest the pool has reached $ 170 million in total locked-in value (TVL).
Mochi founder responded to events
Although Mochi has not responded publicly, Mochi founder Azeem Ahmed told Crypto Briefing that Mochi does not disagree with Curve and that Curve Emergency DAO’s concerns “are reasonable.”
He hopes that once these issues are resolved, “the reinstatement of the gauge will be deemed appropriate, regardless of any strategic fears whales and influencers may have.” He admitted that Mochi had taken a “bold approach to winning the vote in the DAO”.
Ahmed also said that “the DeFi cartel… feels threatened that a small player on the periphery” could pose a threat to the established DeFi ecosystem led by Curve and Convex.
Additionally, he says many in the DeFi community believe Curve’s emergency DAO mismanaged the situation, and that “[singling out] a single user is inappropriate in what should be an unauthorized protocol.
Others commented on Mochi
While Curve took a clear stand against Mochi, other crypto people and project managers have commented on the events as well.
The founder of Yearn Finance, André Cronje expressed concern that Mochi had become 65% under-guaranteed. He added that although the relevant contracts could be settled, he could not believe that the project “would put [its liquidity providers] in so many risks.
Others accused Ahmed of planning to pull a carpet over Mochi, to which Ahmed simply replied: “Do not arrive.”
Meanwhile, Robert Forster, who previously created another DeFi platform called Armor Finance with Ahmed, accused Ahmed of misusing funds from that platform. Ahmed insisted that these funds have been “returned in full” and in turn accused Forster to take funds for his own purposes.
Curve is the largest DeFi exchange platform, with over $ 16 billion in TVL. While Mochi may maintain his reputation throughout this ordeal, Curve seems unlikely to quickly reverse his decision.
Disclaimer: At the time of writing, the authors of this feature owned BTC, ETH, and several other cryptocurrencies.
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