‘This event could be a turning point for the market’

MakerDAO co-founder Rune Christensen believes that the recent hacker attack on decentralized finance (DeFi) protocol Curve Finance could be a turning point for the industry. The weekend hack raised concerns in the DeFi space, as attackers pulled $24 million from several stablecoin pools using a reentry vulnerability in smart contracts with versions of the Vyper scripting language.

Despite the seriousness of the vulnerability, MakerDAO co-founder Christensen remains optimistic about the future of DeFi. Christensen likens this event to “Black Thursday” that occurred in the previous market cycle, before the ensuing bull market.

Christensen suggests that this could be the final collapse before a stronger resurgence that the DeFi ecosystem will return with even more resilience. Other leaders in the blockchain and DeFi space also shared their thoughts on the event.

Nostra founder David Garai commented on the need for lending protocols to proactively monitor liquidity on-chain for each type of collateral to prevent similar events in the future. Stani Kulechov, founder and CEO of Aave, expressed confidence in the Curve team’s ability to recover and overcome setbacks. Hernán Yellati, Head of Global Macro Research at crypto research firm CTF Capital, highlighted the potential two-way impact of the attack.

On the one hand, it could be a turning point for DeFi and lead to significant upside potential in the future. On the other hand, it could also raise concerns about potential contagion among other DeFi protocols.