Mlion News Analysis: OneKey founder’s in-depth interpretation of Curve’s rights protection incident
Welcome to Mlion’s news analysis. Today we focus on OneKey founder Yishi’s public rights protection statement regarding the price manipulation attack on Curve’s DeFi protocol Resupply, which exposed the deep-seated risks and blame-shifting issues in the DeFi ecosystem.
News subject background introduction
OneKey is a blockchain company headquartered in Singapore, focusing on decentralized multi-chain cryptocurrency hardware wallet business, and has received investment support from well-known institutions such as Coinbase Ventures, Dragonfly Capital, and Ribbit Capital. The company is committed to providing complete and secure services to the cryptocurrency industry. Its founder Yishi spoke out in this incident as one of the three major investors of Resupply, which has considerable market influence.
Curve Finance, as a veteran protocol in the DeFi field, [its token CRV has fallen by more than 8.78% in the past 24 hours, with the latest price of $0.523 and a total market value of $998 million](https://news.cnyes.com/news/id/6039896), and its market performance has shown signs of fatigue. Resupply, as a stablecoin protocol, [after its wstUSR market was exploited, the affected contracts have been identified and suspended](https://www.mitrade.com/zh/insights/news/live-news/article-3-916589-20250626).
In-depth news insights
1. Frequent security vulnerabilities in DeFi protocols highlight systemic risks in the industry
Let's take a deeper look at the severe security challenges facing the current DeFi market. The Resupply incident is not an isolated case. [Recently, DeFi protocol security incidents have occurred frequently, including the theft of $87 million from ZeroVault, a major security incident suffered by Cetus, and a loss of more than $12 million from Cork Protocol](https://www.binance.com/zh-CN/square/post/25426959210946). This series of security incidents shows that the DeFi ecosystem is facing unprecedented security challenges and investor confidence has been severely impacted. It is worth noting that the ERC4626 inflation vulnerability is a technical attack method. [Attackers can manipulate the Vault share calculation through a very small initial deposit and subsequent "donation" operations, thereby stealing the assets of subsequent depositors](https://learnblockchain.cn/tags/%E5%AE%89%E5%85%A8). The existence of this vulnerability exposes the serious deficiencies of the current DeFi protocol in code auditing and risk control.
2. The blame-shifting mechanism reveals the flaws in DeFi’s governance system
The most worrying thing about this incident is the phenomenon of mutual blame. Yishi made it clear that the losses caused by the attack should not be passed on to the depositors of the insurance pool, because the original design of the insurance pool was to hedge market risks rather than technical errors. However, the Resupply team tried to shift the consequences of technical deployment errors to innocent depositors, which seriously violated the decentralized governance principle of DeFi. More seriously, Curve, as a beneficiary of the ecosystem, chose to shirk responsibility when faced with losses, and this attitude will further undermine investors' trust in the entire Curve ecosystem. [Curve's token performance has already reflected the market's concerns, and its interconnectedness with other DeFi tokens means that the negative impact will spread further](https://www.okx.com/zh-hant/learn/whale-sell-offs-aave-defi-volatility).
3. Investors’ rights protection dilemma exposes DeFi regulatory vacuum
The public rights protection behavior of the founder of OneKey highlights the lack of investor protection mechanism in the current DeFi field. As one of the three largest investors in Resupply, Yishi faces not only economic losses, but also huge psychological pressure and difficulties in rights protection. In the traditional financial field, such incidents can be resolved through the intervention of regulators and legal means, but in the decentralized environment of DeFi, investors can often only rely on public voice and community pressure to seek solutions. The effect of this rights protection method is often limited and can easily turn into a public relations war among all parties. Especially when it comes to multinational companies and complex technical issues, the cost and difficulty of investors' rights protection will rise sharply, which will seriously undermine the enthusiasm of small investors to participate in DeFi investment.
4. Market confidence crisis will trigger a chain reaction
The impact of this incident on the confidence of the entire DeFi market cannot be underestimated. [Although DeFi has outperformed other cryptocurrency fields recently, with a monthly increase of 11.1%](https://financefeeds.com/zh-CN/%E6%AF%94%E7%89%B9%E5%B8%81%E3%80%81Ath-DeFi-%E8%A1%A8%E7%8E%B0%E4%BC%98%E4%BA%8E-RW A-%E7%9A%84%E7%B9%81%E8%8D%A3%EF%BC%8C%E5%8A%A0%E5%AF%86%E8%B4%A7%E5%B8%81%E5%B8%82%E5%9C%BA%E5%91%A8%E5%BA%A6%E9%A3%99%E5%8D%87/), but frequent security incidents are gradually eroding this advantage. Investors are beginning to question the security and reliability of DeFi protocols, especially when well-known investors publicly defend their rights, this doubt will be further amplified. The market may see a trend of funds flowing out of DeFi protocols and turning to more secure and well-regulated traditional financial products. Once this trend is formed, it will have a lasting negative impact on the entire DeFi ecosystem.
5. Technical debt accumulation threatens the long-term development of DeFi
From a technical perspective, the frequent occurrence of ERC4626 inflation vulnerabilities indicates that the DeFi protocol has accumulated a lot of technical debt during its rapid development. In order to seize the market opportunity, the development team often underinvests in code auditing and security testing. This short-sighted behavior will eventually lead to greater losses. [Rounding errors and inflation attack vulnerabilities in the ERC4626 standard](https://learnblockchain.cn/tags/ERC4626) have become a common means for attackers, but many protocols have not yet taken effective protective measures. This accumulation of technical debt not only threatens the security of a single protocol, but is also likely to trigger systemic risks in the entire DeFi ecosystem. As the means of attack continue to escalate, the problem of technical debt will become an important factor restricting the long-term development of DeFi.
Comparative analysis of market performance
The following table shows the performance comparison of related tokens affected by this incident:
| Token | 24-hour drop | Current price | Market capitalization ranking | Market sentiment |
|------|-----------|----------|----------|----------|
| CRV | 8.78% | $0.523 | Rank 43 | Extremely Pessimistic |
| RSUP | N/A | Trading suspended | N/A | Panic selling |
| Overall DeFi | 5.2% | Downward trend | Under pressure | Shaken confidence |
As can be seen from the above table, the sharp drop in Curve tokens reflects the market’s strong negative reaction to the incident, and the suspension of Resupply token trading has exacerbated investors’ panic.
Summary and Outlook
From a comprehensive analysis, the rights protection actions of the founder of OneKey, while speaking for the victimized investors, also exposed the deep-seated problems in the DeFi ecosystem. Frequent security incidents, responsibility-shifting mechanisms, regulatory vacuums, and the accumulation of technical debt are gradually undermining investors' confidence in the DeFi market. In the short term, we expect that related tokens will continue to be under pressure, and funds may flow out of DeFi protocols to seek safer investment channels. In the long run, unless the DeFi industry can establish a more complete security mechanism and governance system, such incidents will continue to occur, which may eventually lead to a crisis of trust in the entire DeFi market.
Thank you for reading Mlion's news analysis.
Disclaimer: The above content is AI’s opinion and is for reference only and does not constitute investment advice.
Source: mlion.ai
