DeFi Platform Conic Finance's CNC Token Surges 50% as the Protocol Plots Comeback After Hack

Decentralized finance (DeFi) protocol Conic Finance unveiled plans Tuesday to deploy its upgraded version (v2) after suffering an exploit in July.

"Over the past four months Conic has undergone extensive auditing and review in preparation of v2 deployment," a governance post reads. "Now that all audits are nearly finalized it’s time to prepare Conic for launch."

It's time for Conic to make its return.

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

— Conic Finance (@ConicFinance) December 12, 2023

The protocol's governance token CNC jumped about 50% to $2.20 immediately after the announcement, CoinGecko data shows.

Conic Finance allows liquidity providers to diversify exposure to multiple liquidity pools and earn yields on major DeFi platform Curve Finance via so-called Omnipools.

According to the governance post, the protocol will hold voting in two days about the list of supported Omnipool assets, whitelisted Curve pools for each Omnipool and initial liquidity allocation weights. Once the votes conclude, a separate governance proposal about the v2 deployment will include new features, reimbursement schemes and incentives.

The comeback plan follows a hacker attack on the protocol in July, which saw roughly 1,700 ETH, worth over $3.6 million at the time, drained from Conic's ETH Omnipool exploiting a "read-only reentrancy" bug. The total value locked (TVL) on Conic recently dropped to below $1 million from around $150 million before the attack, according to DefiLlama data.

Later in July, Conic raised $1 million from Curve founder Michael Egorov to fund protocol development and upcoming auditing costs.