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🦹🏻♂️ Poly Network Hacked For Over $600M In Biggest DeFi Exploit Ever
Hello Defiers! Here’s what we are covering today,
The open economy is taking over the old one. Subscribe to keep up with this revolution. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button below ($15/mo, $150/yr).
🙌 Together with:
Balancer, one of the leading DeFi automated market makers (AMM) for multiple tokens. Dive into their pools at
Kraken, consistently rated the best and most secure cryptocurrency exchange, which can get you from fiat to DeFi
Aave, an open-source and non-custodial liquidity protocol where users can earn interest on deposits and borrow assets.
The DeFi Pulse Index, by Index Coop - DPI is the easiest way to capture the upside of DeFi with the benefit of diversification. Buy DPI today on your favorite DEX.
TLDR At 6am ET on August 10, over half a billion dollars worth of crypto assets were stolen from Poly Network, a cross-chain protocol that facilitates token swaps across multiple blockchains including Ethereum, Binance Smart Chain and Polygon.
STEAL According to the project, the attacker was able to “exploit a vulnerability between contract calls” and steal $270M worth of Ethereum-based assets, $250M of assets on Binance Smart Chain, and nearly $85M USDC on Polygon.
🎨 Auction of Monet NFT Spurs Questions About Authenticity and the Future of Art
TLDR Michelangelo drew inspiration from the Greco-Roman statues of Classical antiquity to sculpt his masterpiece David. Van Gogh paid homage to the vibrant colors in the woodblock prints of Hokusai and Hiroshige. Great artworks of the past live beyond their creators to inspire great artworks of the future. Digital art and NFTs are no exception.
BUNDLED But there’s a difference between drawing inspiration from art history and drawing over historical art. Now, as the NFT market continues to gain traction in the mainstream art world, some people are using the opportunity to create NFTs based on famous works from the past. In some cases, these NFTs are even being bundled with the originals.
ORIGINAL This brings up a few important questions: Would attaching an NFT to a physical artwork alter the value of the original? Is there any real utility for an NFT linked to a historic artwork? And who has the right to mint an NFT of an artist’s work when the original artist is long-deceased?
Hegic V8888 is live in mainnet:
Hegic is an on-chain peer-to-pool options trading protocol built on Ethereum. With Hegic, DeFi and crypto users can trade 24/7 American, cash-settled, on-chain ETH and WBTC call / put options with no KYC or registration required for trading.
Hegic was founded 1.5 years ago in February, 2020. Hegic V888 (the previous version) was live for 10 months. The results achieved by V888:
● $492,075,000 total volume
● $22M record daily volume
● 6,450 options traded
● 2,825 unique users
● $10,415,000 earned by HEGIC staking lots holders
Introducing Hegic V8888
Trading Options on Hegic V8888
● 0% trading fees: pay only a premium
● 100% gas fee-free options trading
● The lowest prices for ETH and WBTC call / put options
● Auto-exercising of in-the-money options
● Tokenized options for trading on the secondary market
● 90 days is the new maximum period of holding options
Earning Yield on Hegic V8888
● Zero-loss options selling pools with auto-hedging
● x2 higher capital efficiency with flexible collateralization
● Independent pools for selling call and put options
● Individual lock-ups for each liquidity tranche deposited
● Pools’ unrealized profits front-running prevention
● Real-time data on pools APY and P&L per each option sold
Use Hegic now:
In this week’s installment, the indomitable DeFi Dad shows us how to use a new protocol called Tokemak.
Background on Protocol: A new DeFi protocol called Tokemak recently launched its “DeGenesis” event to distribute the native token TOKE. This token will govern its protocol devoted to single-sided liquidity provisioning.
To understand Tokemak, it helps to familiarize yourself with Bancor’s pioneering single-sided LPs, which launched almost a year ago. Single-sided LPs allow liquidity providers to lend a single asset to be paired with other assets in AMM (automated market-maker) liquidity pools, and hence avoid the dilemma of impermanent loss.
In this week’s Research piece, Kieran Smith examines how automated market makers are turning into “financial zombies” chomping on liquidity to stay active, and how that’s paving the way for a new powerful entrant in DeFi — Middleware providers. Often overlooked as basic infrastructure plays, middleware software makers play a vital role in tech ecosystems.
The yield farming revolution has been one of the biggest stories in DeFi over the last year, thanks largely to automated market makers (AMM). Operating behind the scenes, these protocols attracted billions of dollars into smart contracts. Spurred by incentives in the form of newly minted tokens, investors dove into AMM’s liquidity pools and changed the DeFi landscape.
Yet while the trading volume of AMMs almost put them on par with centralized crypto exchanges, they have an inherent flaw: They have to be kept alive artificially like the walking dead.
To navigate fit the bottleneck of blockchain throughput, AMMs reduce the market making mechanism for crypto assets to two liquidity pools and an exchange rate that naturally adjusts based on relative demand. This primitive model is similar to a merchant in an ancient marketplace, swapping grain and beans between two piles on request.
Sports betting site DraftKings is getting into the non-fungible token (NFT) game with an in-house NFT platform it unveiled Monday. A collaboration with Tom Brady’s NFT side hustle, Autograph, the DraftKings Marketplace will begin “dropping” NFTs featuring the U.S. football Buccaneers quarterback on Wednesday.
Fundamentally, having liquidity for a token is important so far as it allows new investors to easily buy into a project and inactive ones to exit. Any less will not derail a strong project and any more is just in vain.
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🧑💻 ✍️ Stories in this newsletter were written by Dan Kahan and Owen Fernau, and edited by Bailey Reutzel and Edward Robinson. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.
The Defiant is a daily newsletter focusing on decentralized finance, a new financial system that’s being built on top of open blockchains. The space is evolving at breakneck speed and revolutionizing tech and money. Sign up to learn more and keep up on the latest, most interesting developments. Subscribers get full access, while free signups get only part of the content. Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button above ($15/mo, $150/yr).