Convex discloses contract vulnerability! A large amount of CVX unlocked simultaneously, causing the coin price to plummet by over 20%.

The Convex Finance protocol on Ethereum released a contract update report on the 4th, stating that there was a code error in the vlCVX reward system contract. Existing users are required to re-lock CVX on the newly deployed contract. The sudden large unlocking of CVX caused a sharp drop in the token price.

Convex Finance Contract Issue

According to the official report, the Convex Finance contract is immutable and cannot be upgraded. To address the contract vulnerability issue with CVX locked vlCVX, a new contract must be redeployed. The vulnerability was not exploited, so users need not worry about the safety of their assets.

However, due to the migration to the new vlCVX contract, all CVX tokens locked in the old contract have been unlocked. To re-lock CVX in the new contract, users must first withdraw the tokens on the locking page.

Note: By locking CVX tokens, users can receive platform trading fee rewards and voting weight. This voting lock mechanism is crucial to the CVX token economy, allowing users to extract bribes from the protocol, provided the tokens are locked for 16 weeks.

CVX Price Plunge

Prior to the unlocking of the locked CVX, approximately 72% of the token supply, about 38 million tokens, was in a locked state. Amidst market volatility due to international events and currency policies, the simultaneous unlocking of such a large amount of CVX caused significant selling pressure in the market, leading to a drop in price from around $19 to about $15 within a few hours. However, there was a noticeable increase in trading volume afterward, and the price is slowly recovering.