Resilient Recovery: Conic Finance's CNC Token Soars 50% Amidst DeFi Platform's Comeback Strategy Post-Hack

In the preceding month of July, Conic Finance faced a substantial security breach, resulting in the unauthorized withdrawal of approximately $3.6 million worth of ether from its protocol. In response to this cyber exploit, the decentralized finance (DeFi) platform has unveiled a comprehensive recovery strategy with the introduction of its enhanced iteration, Conic Finance v2.

The official announcement, disclosed this Tuesday, underscored the meticulous efforts undertaken by Conic Finance over the past four months. The protocol subjected itself to an extensive phase of auditing and scrutiny, laying the groundwork for the seamless deployment of its upgraded version. A governance post accentuated the completion of audits, signifying the imminent launch of Conic v2.

It's time for Conic to make its return.

Read the proposal: https://t.co/xfJdG9trcn

— Conic Finance (@ConicFinance) December 12, 2023

News of the impending upgrade reverberated across the market, triggering a substantial surge in the value of the protocol's governance token, CNC. According to data from CoinGecko, CNC experienced an impressive uptick of approximately 50%, reaching a valuation of $2.20. This surge is indicative of the market's vote of confidence in Conic Finance's resilience and recovery strategy.

Conic Finance sets itself apart by offering liquidity providers the opportunity to diversify their exposure across multiple liquidity pools and earn yields on the widely used DeFi platform, Curve Finance, through its innovative Omnipools.

Outlined in the governance post are upcoming voting procedures slated for two days from now. Participants will actively contribute to decisions regarding the list of supported Omnipool assets, whitelisted Curve pools for each Omnipool, and the initial allocation of liquidity weights. Following these decisions, a separate governance proposal will be presented, addressing Conic Finance v2 deployment and encompassing novel features, reimbursement frameworks, and incentivization structures.

The strategic recovery plan is a direct response to the hacker attack suffered in July, exploiting a "read-only reentrancy" bug and resulting in the misappropriation of approximately 1,700 ETH, equivalent to over $3.6 million at that time, from Conic's ETH Omnipool. This incident precipitated a substantial decline in the total value locked (TVL) on Conic, plummeting to below $1 million from the pre-attack level of approximately $150 million, as corroborated by DefiLlama data.

In a bid to bolster recovery endeavors, Conic Finance successfully secured $1 million in funding from Curve founder Michael Egorov later in July. This financial injection has been earmarked for protocol development and forthcoming auditing expenses, underscoring the steadfast commitment to fortifying the platform's security and resilience in the face of evolving challenges.

Read More: Egorov's DeFi Debt Saga: Clearing the Path