Mochi Blocked Following Attempted Governance Attack

Curve Blocks Mochi

November 13, 2021

Reading Time: 2 minutes

Curve Finance and Mochi Finance are at odds after the latter was accused of exploiting DeFi governance mechanisms.

Mochi reportedly created a large number of its own MOCHI token to mint the USDM stable coin, according to Curve. Curve claims to have purchased a substantial amount of CVX tokens using those monies.

Finally, despite warnings, Mochi reportedly froze those CVX tokens in an apparent effort to boost incentives for Mochi’s own USDM manufacturing pool. This would also provide Mochi with greater CVX prizes.

While Curve Finance claims Mochi’s USDM manufacturing pool has achieved $100 million in liquidity, other sources claim the pool has hit $170 million in total value locked (TVL).

Mochi creator Azeem Ahmed told Crypto Briefing that Mochi is not at conflict with Curve and that the Curve Emergency DAO’s worries are legitimate.

“The gauge restoration will be regarded adequate, irrespective of any anxieties the whales and influencers may have,” he hopes after such issues are addressed. Mochi used a “bold strategy to acquire voting power in the DAO,” he admits.

He further claims that many DeFi members feel Curve’s Emergency DAO handled the matter incorrectly and that singling out a single user is improper in what should be a permissionless system.

While Curve has taken a strong stand against Mochi, other people and crypto project leaders have also expressed their thoughts on the situation.

Andre Cronje, the founder of Yearn Finance, voiced worry that Mochi had become 65 percent undercollateralized. He went on to say that, although the applicable contracts might be paid, he couldn’t believe the enterprise would place [its liquidity suppliers] in such a dangerous position.

Others accused Ahmed of plotting to draw a rug over Mochi, to which he just replied, “Not happening.”

Meanwhile, Robert Forster, who co-founded the Armor Finance DeFi platform with Ahmed, has accused Ahmed of diverting money from that platform. Ahmed stated that the monies “were returned in whole,” accusing Forster of using the cash for his gain.

The curve is the biggest DeFi swap platform, with a total value of over $16 billion locked up. Though Mochi’s reputation may be preserved throughout this process, Curve’s decision is unlikely to be reversed fast.

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