Curve Finance's soft liquidation mechanism was successfully field tested during a recent hack attempt, but the price of the internal CRV token fell more than 28% in the chaos. 😟

Despite the significant drop in CRV's value, Curve Finance's liquidation process worked as intended.

Curve Finance founder Mikhail Egorov faced severe liquidation pressure on June 13 when the price of the CRV token fell.

The soft liquidation mechanism is part of Curve Finance's Loan and Liquidation Automatic Market Making Algorithm (LLAMMA).

Despite the protective measures in place, the market reacted sharply to the event, with the CRV price falling by more than 28% in the last 24 hours.