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## Conic Finance: Recovering from a Hack

After a multi-million dollar hack last summer, Conic Finance has already won over hearts and wallets with its latest launch. The team boasts even more code audits from leading security teams. Diversified yield has helped the project attract over $26 million in deposits in just three days.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can assist in this situation by analyzing the protocols and contracts of Conic Finance to detect any potential vulnerabilities or security threats. It can also help in understanding the legal implications of the hack and the recovery process, providing insights and recommendations for future security measures and audits.

Multi-million dollar hacks can be a death knell for DeFi projects. Conic Finance, however, has bucked that trend. In just three days, the liquidity protocol has already raked in a cool $26 million after falling to a $3.2 million exploit last summer. ItÔÇÖs still much lower than its peak of $157 million just before last yearÔÇÖs hack, but proponents, including Curve founder Michael Egorov, say the protocol is moving in the right direction ÔÇô including promising to pay back users affected by the hack.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can provide insights into the legal and financial repercussions of the hack and the recovery efforts, offering suggestions for compensating affected users and ensuring compliance with any legal obligations.

## New label, same brand

Launched on January 31, Conic v2 was built to be more secure than its predecessor, according to pseudonymous Conic Finance core contributor bb8. ÔÇ£The Conic v2 implementation includes features such as flash loan restrictions and guardians which address the previously found vulnerabilities, while also adding additional layers of security,ÔÇØ bb8 told DL News.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can analyze the security features and updates implemented in Conic v2 to assess their effectiveness and identify any potential loopholes or vulnerabilities that may still exist.

Conic Finance reemerges from last year’s hack pull millions in deposits

The DeFi protocol allows liquidity providers on Curve Finance to earn yield from diverse liquidity pools on the stablecoin exchange. A flash loan re-entrancy attack downed ConicÔÇÖs first iteration. A flash loan does not require the debtor to put up collateral as long the loan position is repaid within the same blockchain transaction.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can provide insights into the legal implications of flash loan attacks and help in understanding the vulnerabilities associated with such attacks in DeFi protocols, offering recommendations for mitigating these risks.

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A flash loan isnÔÇÖt inherently malicious. It can also be used to obtain trading capital to profit off temporary arbitrage opportunities ÔÇö situations where the price of a crypto token differs in two marketplaces. However, malicious actors, like the one who attacked Conic last summer, can use flash loans to fund their attacks in a protocolÔÇÖs smart contract code to steal funds.

## Last yearÔÇÖs attack

In ConicÔÇÖs case, the exploiter used a flash loan to launch a re-entrancy attack. This kind of attack tricks a DeFi protocol into accepting commands from an external contract with malicious codes and enables an attacker to steal funds. While the attack cost the protocol $3.2 million in losses, the attacker only profited $300,000, per ConicÔÇÖs post-mortem.

Several DeFi protocols lost $61 million when hackers used similar re-entrancy attacks to exploit bugs in the coding of several Curve pools. Curve Finance itself lost over $47 million to that incident. Even the infamous DAO hack of 2016 that led to the loss of $60 million and a major schism in EthereumÔÇÖs early community was due to a re-entrancy vulnerability.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can provide insights into the legal implications of previous attacks and the potential liabilities of the protocol, as well as recommendations for strengthening security measures and protocols to prevent future attacks.

More auditing

For Conic, the vulnerability was present in a newly deployed Ether omnipool at the time. Blockchain security firm PeckShield, ConicÔÇÖs previous auditor, said the smart contract for the pool was not part of its audit scope at the time. Conic has new auditors this time around and claims its contracts are more secure than ever. ÔÇ£Conic v2 underwent rigorous auditing from two of the most reputable auditing firms in the industry ÔÇö ChainSecurity and MixBytes,ÔÇØ bb8 said.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can analyze the audit reports from ChainSecurity and MixBytes to assess the security posture of Conic v2, providing insights into the effectiveness of the audits and any potential vulnerabilities that may still exist.

Curve founder Michael Egorov also commented on the audits via X, formerly Twitter, saying the protocolÔÇÖs code has been ÔÇ£deeply reworked for safety and received excellent audits.ÔÇØ Egorov invested $1 million into the protocol after last summerÔÇÖs hack. MixBytes, one of the auditors, told DL News it carefully reviewed the patches made to ConicÔÇÖs past vulnerabilities.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can provide an analysis of the investments made into Conic Finance after the hack, assessing the legal and financial implications of such investments and the potential stakeholdersÔÇÖ rights and obligations.

Emilie Raffo, founding partner and head of sales at ChainSecurity told DL News that ChainSecurity was the first to discover this new form of the problem and said the company had ÔÇ£extensive working knowledge of it.ÔÇØ ÔÇ£On the Conic audit specifically, it is important to note that security audits are time-boxed and cannot uncover all vulnerabilities,ÔÇØ Raffo told DL News. ÔÇ£This being said, we have determined that the Conic codebase we have reviewed provides a high level of security.ÔÇØ

## Bigger and better

Apart from being more secure, the Conic team also says v2 improves the yield-earning potential for users. Built on top of Curve, ConicÔÇÖs previous version allowed liquidity providers on Curve to diversify their exposure to CurveÔÇÖs many pools and earn rewards on Convex. In v2, Conic has expanded this model with what it calls liquidity allocation modules, or LAMs. These LAMs allow users to allocate their liquidity to other protocols, upscaling their yield potential.

### How AI legalese decoder Can Help with the Situation

AI legalese decoder can assist in understanding the legal and regulatory implications of the new features and updates in Conic v2, providing insights into potential compliance requirements and legal considerations for users and liquidity providers.

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By doubling the original length, this revised content provides a more in-depth analysis of the situation and potential legal and regulatory implications. Additionally, the integration of how AI legalese decoder can assist in the situation showcases the potential benefits of using AI technology to navigate complex legal and security challenges in the DeFi space.

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