Tag: DeFi

Unsung hero saves DeFi protocol from potential exploit: Finance Redefined

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Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week. The last week’s headline was dominated by some of the biggest hacks in DeFi. This week is redemption time for many DeFi protocols that either averted an attempted hack or got a significant chunk of their stolen funds back. The BitBTC bridge reportedly had a bug that would essentially allow an attacker to mint fake tokens on one side of the bridge and swap…

DeFi Options Platform Opyn’s ‘Crab Strategy’ Generates 14% Return in Comatose Ether Market

The “Crab” strategy, designed by leading DeFi options platform Opyn, is built to make money during bouts of low ether (ETH) price volatility. It has earned 14% returns in U.S. dollar terms and 42% in ether terms since its v2 went live in late July. Ether has dropped 20% since the end of July, however, the cryptocurrency has primarily traded between $1,100 to $1,300 in the past four weeks. Source

Stealthy Crypto Hedge Fund Edge Capital Raises $66.8M for DeFi Bets

The firm was founded in early 2020 by Vadim Khramov and headquartered in Boca Raton, Florida, according to LinkedIn and SEC filings. While Khramov refers to the firm as a hedge fund, the SEC filings don’t have that box checked, instead indicating “other” for the type of investment fund. Prior to Edge Capital, Khramov was active at various TradFi firms, including a macro hedge fund and Bank of America Merrill Lynch in London, according to his LinkedIn profile. Source

DeFi abandons Ponzi farms for ‘real yield’ – Cointelegraph Magazine

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Decentralized finance is beginning to embrace a hot new phrase: “real yield.” It refers to DeFi projects that survive purely on distributing the actual revenue they generate rather than incentivizing stakeholders by handing out dilutionary free tokens. Where does this real yield come from? Are “fees” really a sustainable model for growth at this early stage? It depends on who you ask.  The DeFi ponzinomics problem is our natural starting point. Ponzi farming DeFi started to arrive as a concept in 2018, and 2020’s “DeFi summer” saw market entrants —…

‘Secretly circulating’ draft crypto bill could be a ‘boon’ to DeFi

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A new draft of the Digital Commodities Consumer Protection Act (DCCPA) bill has started to circulate online, with some commentary suggesting it could be positive for decentralized finance (DeFi) and crypto. A prior draft version of the bill drew heavy criticism from industry representative bodies for containing too broad a definition for a “digital commodity platform,” which “could be interpreted as a ban on decentralized finance (DeFi).” In a newly posted 31-page draft bill, shared by Delphi Labs general counsel Gabriel Shapiro, the lawyer said he made the draft bill…

DeFi had better implement good governance before it’s too late

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The lack of regulation and good governance in the crypto sector is more than a hindrance to businesses and lack of protection for users, it is an existential threat, Bank of England Financial Policy Committee external member Carolyn Wilkins said in a talk on Oct. 19. Decentralized finance (DeFi) would be a good place to start getting affairs in order, she said.  Speaking at the University College London Centre for Blockchain Technologies, Wilkins said that the most common complaints about scamming that reach the Financial Conduct Authority, the U.K. financial…

Half of all DeFi exploits are cross-bridge hacks

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According to a new report by crypto data aggregator Token Terminal, approximately 50% of exploits in decentralized finance, or DeFi, occur on cross-chain bridges. In two years’ time, more than $2.5 billion have been stolen by hackers from exploiting vulnerabilities on cross-chain bridges. The amount is enormous comparison to other security breaches, such as DeFi lending hacks ($718 million) and decentralized exchange exploits ($362 million) in that period.  Bridge exploits account for ~50% of all DeFi exploits, totaling ~$2.5B in lost assets These hacks can typically be attributed to smart…

Defi Platform Moola Exploited for $8.4 Million in Incident Described as ‘Incredibly Simple Attack’ – Security Bitcoin News

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Moola, a decentralized finance (defi) lending and borrowing platform, was recently exploited for $8.4 million in what has been described as an “incredibly simple attack.” Moola responded to the attack by pausing all activity on the platform. The defi platform also told the attacker(s) it was willing to negotiate a “bounty payment in exchange for returning the funds within the next 24 hours,” and Moola Market has since claimed that “93.1% of funds have been returned to the Moola governance multi-sig.” Funds Siphoned From Moola The decentralized finance (defi) lending…