DeFi chronicles
sept.
27
Crypto hacks and scams resume intensity. Stay alert 🚨
Crypto scammers and hackers tend to operate in tandem with the markets.
As crypto markets start to pick up, it is a good time for a security reminder, to stay mindful of the ways you could lose your crypto 👇
Compared to last year’s nearly $4 billion lost to hacks and scams, the first …
How Real World Assets are rekindling crypto finance's fire
A look at the RWA’s promise of bringing trillions of dollars worth of value to the crypto space.
A new acronym has entered the crypto vocabulary and appears to be firmly establishing itself. RWA, short for Real World Assets, is gaining recognition as one of the most promising use cases in …
MakerDAO to leave Ethereum: main points of the Endgame
The veteran DeFi protocol might be bidding adieu to Ethereum.
In the context of its ambitious transformation project called Endgame, MakerDAO is now considering moving to a new blockchain, which would be a fork off Solana. What?!🤯
To say that this decision is controversial would be an understatement.
The Ethereum world is shaken, and Vitalik Buterin sold the remainder …
Curve Finance hack exposing the core problems of DeFi
DeFi has democratized finance, breaking the barriers that once kept it exclusive and opaque. However, DeFi comes with its fair share of problems, and the recent hack of Curve Finance – or more precisely, the mayhem it has triggered – has shown us some of the ugliest.
What happened to Curve Finance ❓
Curve is one …
How is Ethereum blockchain used today?
A look into the crypto activity on the main web3 blockchain, analyzing the main trends it has hosted: ICOs, DeFi, stablecoins, and NFTs.
The launch of Ethereum in 2015 marked the new era of blockchain as a smart contract platform – a universal base created to host all kinds of decentralized …
The great potential of DeFi insurance
No, DeFi cannot fix the finance. At least not yet.
To be considered as an appropriate alternative it must first work on its own failings: better user experience, user responsibility relief, and of course – an omnipresent and easy-to-use insurance cover ☔
With over $6 billion worth of crypto 💰 stolen from …
CeFi, TradFi, and DeFi: is crypto a savior or a catalyst of the financial crisis?
https://www.youtube.com/watch?v=66lATLKws_Q
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These last few weeks we were all forced into economic and financial reflection, courtesy of the three failed US banks, problems at Credit Suisse, regulators’ reaction, and the Fed’s heating money printing press.
Crypto enthusiasts …
Top 5 DeFi protocols to illustrate the space… and some tips to spot its future leaders
Weekly stories are first featured in our Newsletter. Subscribe here to receive it directly in your mailbox every Monday.
Happy New Year, dear readers! 🎉
We’re back on track and this year’s first Newsletter is dedicated to DeFi: demystifying, guiding through, and maybe even tipping off a bit 😉
DeFi, or Decentralized Finance, is one of …
FTX collapse: how to avoid threats and profit from opportunities
Weekly stories are first featured in our Newsletter. Subscribe here to receive it directly in your mailbox every Monday
In brief. FTX collapse is a major event that will have numerous repercussions for the whole crypto industry. Good news: it presents more opportunities than threats.
Here’s how we see the most likely scenario unfolding:
Most …
Can DeFi help the CBDCs ?
Admittedly, it’s not central banks’ finest hour.
? As inflation is rising across the world in a natural (and totally expected) reaction to central banks’ unlimited money printing, some central bankers try to convince people that it “came out of nowhere”, like Christine Lagarde in her recent interview that has quickly spread across …
A promising alternative to cross-chain bridges in on the way
Cross-chain bridging is crypto industry’s Achilles’ heel and a favourite attack vector for hackers.A recent development by a Canadian software company Axelar may have given a response to this problem.
In partnership with Circle ?, the issuer of USDC stablecoin, Axelar has presented a new way of transferring crypto from one blockchain to another, and it …
A short guide to Ethereum staking services
In 2 to 4 days Ethereum will transition to the Proof-of-Stake consensus, which will give the power of adding new blocks (and earning their rewards) to the users who staked at least 32 ETH and became a Validator.
However, not everyone has $55k to lock for 6-12 months (until the Shanghai …
USDC losing market trust in the aftermath of Tornado Cash
Stablecoins are crucial for the development of crypto economy, providing it with the connection to the fiat world. They make up 15% of the total crypto market cap, participate in most DeFi trading pairs, and penetrate almost every part of the crypto space.
For an asset with such a broad reach, …
UN requires developing nations to hinder crypto finance
The UN has now officially joined the club of “international” (US-based) crypto haters, already counting the IMF and the World Bank.
In August, the UNCTAD, its arm charged with promoting interests of developing states in world trade, released its recommendations to “curb cryptocurrencies in developing countries”, arguing that crypto undermines their …
How Tornado Cash ban can help the crypto industry evolve
Tornado Cash ban is likely to have long-standing consequences for the crypto space, widening the chasm between its closely monitored custodial part, and non-custodial one, which will become more decentralized and more anonymous.
The latter is necessary: taking away privacy services from the blockchain can be dangerous for average users. …
Nomad hack shows cross-chain bridges still vulnerable
? Cross-chain bridges play an important role in building a multi-blockchain world, but they need to evolve.
Cross-chain bridges are protocols that allow users transfer assets and information between different blockchains, and they are now hackers’ favorite prey. Last week’s exploit of Nomad was 13th of this type so far in …
This week's story: 5 lessons about crypto finance we have learned in this bear market
Weekly stories are first featured in our Newsletter. Subscribe here to receive them directly in your mailbox every Monday.
Every bear market is a test. Those who fail to pass it are bound to disappear, and those who succeed will have more mistakes to learn from.
Crypto finance is a very young sector, and the …
The Great Deleveraging
Terra’s collapse has sent a shockwave to the whole crypto industry, and it is not over yet. However, this pain might not have been in vain, as individuals and companies learn the dangers of crypto finance.
? Last week Three Arrows Capital, a crypto hedge fund largely exposed to Terra and …
This is not a crypto winter. Here's why.
No, it’s not a “crypto winter” ❄️
This term was coined in 2018, when Bitcoin price lost all of its bull run’s gains, and for the first time – at a scale involving general public. The ensuing devastation was so overwhelming that many crypto-related activities have simply stopped, including most of …
Solend troubles raise questions about DeFi governance
What is better for a DeFi protocol: try and save its users from liquidations, or hurt its reputation for good?The choice was not obvious for Solend, but it has finally made one – to the relief of the whole DeFi industry.
? Solend is a decentralized Solana-based lending platform that allows users to …
Three Arrows Capital to face possible insolvency
As crypto market continues its descent, more flaws in protocols and companies are unveiled.
? We saw the failed logic of Terra protocol,
? the risks of over-exposure to synthetic assets like stETH of Celsuis,
? and now… the over-indebtedness of Three Arrows Capital ?
Three Arrows, commonly known as 3AC, is a crypto …
What happened to Celsius?
Crypto companies continue showing us the many different dangers the CeFi and DeFi protocols can hide, and this week's most remarkable demonstration is courtesy of Celsius, American crypto lending firm that halted all clients' withdrawals and transfers yesterday ?
Celsuis is (was?) offering 5 –18% APY (annual percentage yield) on deposited …
Terra community has approved a salvage plan
A week after $UST de-pegging, Terra-Luna community has finally approved a rescue plan ?
The newly formed Terra Builder Alliance published today the final version of Do Kwon’s “Luna go forward proposal”, which aims at salvaging the community and the ecosystem and consists in:? forking Terra into a new chain without an …
This week's story: Terra-Luna’s crash: what happened?
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The de-pegging of the algorithmic stablecoin TerraUSD ($UST) and the concurrent crash of its counterpart $LUNA have marked the “Lehman moment” of this May’s crypto markets capitulation.
Mainstream media and crypto-haters were quick to …
Crypto market meltdown: key data to look at
After weeks of doubts, it looks like the crypto market capitulation is finally upon us.
Market capitulation is a period of dramatic surge in selling pressure that launches a chain reaction: investors surrender and sell their crypto at lower and lower prices, leading to leveraged/derivatives positions liquidations, which in turn leads …
How TerraUSD lost its peg: algorithmic stablecoin trouble
Volatility periods have always been difficult for decentralized stablecoins, and now TerraUSD experiences a trouble of its own, and a pretty big one.
On Saturday, a whale sold $285M of TerraUSD, which led to it briefly losing its peg and falling to $0.98. $LUNA, the currency that fuels Terra blockchain and …
Terra buying $10Bn in Bitcoin
Terra continues growing ?
The blockchain created specifically for the decentralized dollar-pegged stablecoin Terra USD (UST), and which has since become a popular playing ground for the DeFi projects, is about to enter a whole new level.Terra’s founder Do Kwon has recently announced the company’s buying over $10Bn in Bitcoin to backstop short-term UST redemptions and fill a decentralized forex …
Ethereum's decreasing demand
Ethereum gas price, unlike the real-life one, is seeing a steep decline.
Crypto analytics firm Messari has noted an average transaction fee of $10, down from $62 in November.
? The decline, measured in dollar terms, coincided with lower ETH prices, of course. However, measured in ETH, gas fees have decreased as …
SEC is after crypto lenders
The SEC has now set its sights on crypto lenders ?
You know how upon entering some (most of?) crypto finance and DeFi websites you are asked if you’re a US citizen?
Well, that’s because the SEC (Securities and Exchange Commission) and its fellow organizations make it very hard, and sometimes …
Two cross-chain protocols hacked in a week
❎ Cross-chain protocols play important role in building a multi-blockchain world, but they are not without flaws.
This week saw not one, but two hacks involving bridges: Wormhole and Qbridge.
?️ Wormhole, an interoperability protocol bridging Solana and Ethereum, was exploited yesterday on the Solana side.
As most bridges, Wormhole uses a two-way peg to simulate the experience of …
Where will crypto go in 2022?
First days of the new year are often the occasion to make
predictions for the rest of it.
We combed through the highlights of 2021 and picked the some of the openings the crypto industry can use in 2022:
Bitcoin price >$100kall major consumer brands create their metaverse experiencescrypto mining goes carbon-neutral with …
Terra blockchain on the rise
Stablecoins don’t have to be at the mercy of a company that promises to keep them aligned with fiat.
Decentralized stablecoins exist for four years already, since MakerDAO issued its first DAI in 2017.
DAI keeps its 1:1 peg to the USD through the system of
Ethereum-based smart contracts managing an overcollateralized …
Put your NFTs to work
What if you could use your NFTs to earn profit instead of them juts lying idle in your wallet?
An increasing number of solutions, both centralized and decentralized, are now allowing you to do so.
This week lending company NEXO (centralized) announced that it will from now on accept NFTs as collateral, …
Crypto crime in 2021: Ponzi, rug pulls and more
Crypto finance and DeFi are great tools democratizing finance and allowing every person in the world to invest, trade and earn yields on crypto markets (and not only).
Its democratic nature, however, attracts not only honest
developers, but also all sorts of scammers who surf on the hype and users’
naivety.
On-chain analytics firm …
Compound protocol overpays $15M to users
DeFi is a fascinating tech allowing everyone to participate in an independent financial ecosystem that does not answer to any central authority. However, it is still in its early age and bugs in smart contracts’ code are all too common, even in the long-established protocols, especially when they undergo updates.
Yesterday …
Chinese traders turn to DEX
This is becoming so exiting to watch. Days after crypto transactions were made illegal in China, the country’s trading activity switches to decentralized options.Tokens of UniSwap and Sushiswap Decentralized Exchanges gained +41% and +36% in one day, while the decentralized derivatives platform DYDX registered more than a triple increase …
DeFi attack season is open
There has been 4 important DeFi exploits in the last 7 days.
Sept. 14: Solana-based Raydium fell victim to a DDoS attack, forcing the whole network to suspend its operations for over 14 hours,
Sept. 17: SushiSwap’s token launch platform MISO had malicious code injected into its front end, replacing the …
Celo aiming at bringing the DeFi to everyone
While Bitcoin is consolidating, it’s altcoins’ time to score new highs, and one coin in particular has been especially popular this week - CELO, the currency of the namesake blockchain.
Celo was conceived as a mobile-first blockchain with a BFT
consensus aiming primarily at facilitating payments, but also allowing DApps
development on it. …
Hacker returns funds after a $600M DeFi exploit
DeFi doesn’t stop surprising us.
Yesterday a cross-chain protocol PolyNetwork was hacked and over $600 M were stolen from the three blockchains PolyNetwork was bridging: Ethereum, Polygon and BSC. This is the biggest DeFi hack so far, and while we’re still waiting for a postmortem analysis, experts suspect that a …
Is it dangerous for the DeFi to stay in America?
Decentralized Finance is a marvellous invention: with an open-source code run on a blockchain, no central authority can intervene in its processes. 2021 saw the DeFi becoming more liquid and user-friendly, which explains its extraordinary growth: since the beginning of the year the Total Value Locked increased x6 from $20Bn …
Wyoming legally recognizes DAO
Wyoming continues its path to the permission-based crypto economy. It already recognizes cryptocurrencies as money and gives bank licenses to crypto businesses (Kraken exchange was the first to receive it in 2020).
It is tackling more complex notions now, such as DAO – Decentralized Autonomous Organizations - member-managed or algorithmically managed …
Decentralized Finance in the making
DeFi sector is booming, and new projects pop up like
mushrooms after the rain.
Unsurprisingly, they can go both ways : either to a great
success or crashing down, allowing others to learn from their mistakes through
the beauty of open source.
This month saw Iron Finance and SafeDollar algorithmic stablecoins on Polygon network …
More flash loan attacks on DeFi protocols on the BSC
Flash loan attacks are intensifying on Binance Smart Chain, with two more
DeFi protocol suffering exploits over the weekend – BurgerSwap and BeltFinance.
BurgerSwap, a DEX on Binance
Smart Chain (BSC), fell victim to a flash loan attack on May 28. The equivalent
of $7.2 M as stolen in 14 transactions:
The hacker(s) created their …
BSC-based PancakeBunny hacked via a flash loan
DeFi protocol PancakeBunny, a yield aggregator on the Binance Smart Chain (BSC), got hacked on May 20 via a flash loan attack. The hacker drained appr. $45M from the platform, dumping the price of its token BUNNY -96%.
Attack modus operandi:
The hacker used PancakeSwap to borrow a huge amount of BNBThe hacker …
1inch joins Aave and Sushiswap in integrating Polygon
Ethereum is a powerful blockchain allowing to build a great variety of DApps, but it hardly scales enough to support their functioning, which leads to traffic jams and huge fees. The solution came in the form of Polygon, a layer-2 running on top of the main blockchain. More and more Ethereum-born …
DeFi and its sectors
Decentralized Finance uses the blockchain to reshape traditional financial sectors, such as lending-borrowing, exchanges, insurance and investment. It also originated a new way of monetizing crypto ownership called farming.
Decentralized finance, or DeFi, is an ecosystem of financial services that is based on a blockchain and uses smart contracts. The DeFi …
MakerDAO issues a mortgage loan
DeFi is well on its way to taking over traditional finance, now also including its coverage of real-world assets. Yesterday MakerDAO issued a mortgage loan, using an ERC-20 token representing an ownership stake in a pool of real estate assets as collateral. With the help of New Silver real estate …
