As described by analysts at Lookonchain on Nov. 22, tokens of decentralized exchange Curve Finance (CRV) appear to have suffered a major short-seller attack. According to Lookonchain, ponzishorter.eth, an address associated with Mango Markets exploiter Avraham Eisenberg, first swapped 40 million USD Coin (USDC) on Nov. 13 into decentralized finance protocol Aave to borrow CRV for selling. 

The act allegedly sent the price of CRV falling from $0.625 to $0.464 during the week. Fast forward to today, blockchain data shows that ponzishorter.eth borrowed a further 30 million CRV ($14.85 million) through two transactions and transferred them to OKEx for selling. The team at Lookonchain hypothesized that the trade was conducted to drive down the token price "so many people who used CRV as collateral will face liquidation."

In response to the heavy selling activity, a wallet associated with Curve's founder added 20 million more CRV in collateral. On Aave, the wallet addresses' health factor was 1.65 at the time of publication, indicating an excess of collateral against borrowed assets.

(by Ziyuan Sun)