uniswap

Exploits and Flash Loans Are Just the Beginning, Defi Economy Is Less Private Than People Think

22/11/2020 by Idelto Editor

Exploits and Flash Loans Are Just the Beginning, Defi Economy Less Private Than People Think

Decentralized finance otherwise known as defi has climbed significantly in value this year, as the total value locked (TVL) in defi today is over $14 billion. Meanwhile, numerous defi platforms are getting attacked with flash loans and there are so many new defi projects, it’s hard to keep track of them all. Moreover, while many defi supporters claim these platforms offer greater privacy, examples now show that most everything can be seen onchain connecting ethereum addresses to identities and companies.

Exploits and Flash Loans Are Becoming Commonplace in the Land of Decentralized Finance

In 2020, defi exploded and there’s billions of dollars sitting in a myriad of platforms and applications today offering a new type of finance. The growth defi has seen is unheard of and resembles the initial coin offering (ICO) days back in 2017. One of the biggest differences, however, is many defi projects are more than just a white paper and token, as numerous applications like Maker, Uniswap, Aave, and others have offered various degrees of utility.

On November 22, 2020, statistics show that the defi TVL has surpassed the $14 billion handle. At the end of August, the defi ecosystem’s aggregate TVL was only $7 billion, which means the defi economy doubled in a mere three months. The massive growth is not without problems and even blatant defi scams. It seems a myriad of defi projects are getting drained by experienced ethereum users, liquidating capital via complex flash loans.

when next defi exploit?

— i.am.nomad (@IamNomad) November 21, 2020

This week alone, news.Bitcoin.com reported on two major flash loans, after reporting on these attacks on multiple occasions beforehand as well. Five days ago the Value Defi project saw a flash loan attack that siphoned $6 million in DAI. This was after the team tweeted that the project had “flash-loan attack prevention” and subsequently deleted the tweet. Flash loans and defi exploits have been happening so much, it’s become a regular activity.

On November 21, 2020, the popular Twitter account “I am nomad” asked his 65,000 followers when the next defi exploit would be in a survey with three choices. The three choices included “today,” “tomorrow,” and “within seven days.” Well not too long after the tweet, The Block’s director of research, Larry Cermak responded to the tweet.

“It was quick,” Cermak replied, sharing an article about the defi platform Pickle Finance getting exploited for close to $20 million.

Exploits and Flash Loans Are Just the Beginning, Defi Economy Is Less Private Than People Think — Defi users have been getting upset at defi projects that have been exploited in recent days and many say some defi developers are incompetent.

The Lidless Eye and Onchain Transactions

Moreover, a few days beforehand, the Twitter handle @n2ckchong (Nick C) shared an interesting perspective of how much of the defi world can be seen onchain.

“What’s beautiful (and kind of scary) about defi is that we can see everything that happens on-chain and connect addresses to identities and firms,” Nick C tweeted on Wednesday. In the Twitter thread, Nick C shows a breakdown of ether addresses stemming from Three Arrows Capital (3AC), Jump Trading, and Polychain Capital.

The first tweet alleges that 3AC is one of “the biggest Compound suppliers” and also notes 3AC has $100M in WBTC, $50M in ETH, and $6M in the stablecoin DAI. “3AC is also supplying 275 YFI and $13M in LINK to Aave and is farming SUSHI with 1.5M recently-acquired SUSHI,” Nick C said. “3AC [also] acquired 351k LINK during [the] recent dip,” he added. In another tweet, Nick C breaks down some ostensible estimates from Polychain Capital’s defi action.

“Polychain Capital has been the biggest YFI buyer over the past few weeks,” he further wrote. “They’ve acquired 570 YFI (~2% total supply) over the past five weeks at an estimated cost basis of $12~14k. They also own 48,000 ETH and 1,315 MKR on this address,” Nick C detailed. The Twitter thread also gives a breakdown of Jump Trading’s defi action as well as Nick C notes that Jump Trading is “a massive prop trading firm based in Chicago.” The researcher continued by adding:

[Jump Trading] are big investors in Ethereum tokens as well.

Nick C’s insights earned him a great number of Twitter followers after he shared his thoughts about the three firms and the defi action. After publishing the thread, Nick C got a few thousand followers and he said he “would continue posting high-signal content when I have the time.”

The perspective Nick C shared on Wednesday shows how the defi economy displays highly visible content onchain, and it’s a lot less private than most people think.

What do you think about all the defi exploits these days and the visibility of million-dollar onchain transactions and trades? Let us know what you think about this subject in the comments section below.

The post Exploits and Flash Loans Are Just the Beginning, Defi Economy Is Less Private Than People Think appeared first on Bitcoin News.

Ethereum User Spends $9,500 in Fees Sending Just $120 in an Error to Forget

08/11/2020 by Idelto Editor

An Ethereum user mistakenly paid $9,500 in transaction fees to send just $120. The user, identified by their Reddit moniker ‘Proudbitcoiner’, says the transaction “destroyed my life” and is now desperately asking miners to return the money.

According to a Nov. 4 post on Reddit, Proudbitcoiner said they accidentally typed in the wrong transaction fee, leading to a transfer of amounts nearly 80 times the size intended.

In total, the user, who was swapping tokens on Uniswap via the ethereum wallet Metamask, paid 23.5 ether (ETH), worth roughly $10,300 at the time of writing. ETH fees averaged $1.07 when Proudbitcoiner made the transaction.

The funds were immediately pocketed by mining pool Ethermine, a unit of the crypto miner Bitfly, which by some coincidence created the block containing a transaction with a fee of $2.6 million in June.

“Metamask didn’t populate the ‘gas limit’ field with the correct amount in my previous transaction and that transaction failed, so I decided to change it manually in the next transaction (this one), but instead of typing 200000 in ‘gas limit’ input field, I wrote it on the “Gas Price” input field, so I paid 200000 Gwei for this transaction and destroyed my life,” Proudbitcoiner explained.

Transaction fees on the Ethereum blockchain are paid in “gas” and measured in “gwei,” a system that can be confusing to a lot of people. The gas makes it possible to perform a transaction on the network, as long as miners agree to the price threshold.

Users can set limits on the maximum amount of gas they are willing to spend per transaction. Combined with the “gas price”, indicated in small amounts of ether called “gwei”, the two set the fee per transaction on the Ethereum network.

And because miners prioritize transactions with the highest fees, Proudbitcoiner’s transfer was processed within seconds. Now, they plead the miner gives the money back. The user lamented:

I contacted Ethermine on Twitter, I contacted their CEO Peter Pratscher on Twitter, I made this post here … I am out of ideas. Ethermine, because they mined the block my transaction was part of and it’s their goodwill if they want to return this or not.

Ethermine is not obliged to reimburse the money. When it encountered a similar issue on a $2.6 million transaction fee in June, the miner held the funds for four days, intending to pay the owner back, but later distributed the block reward to miners within its pool.

Bitfly, Ethermine’s parent firm, said at the time that it will not investigate or refund any such errors in the future.

What do you think about Proudbitcoiner’s error? Let us know in the comments section below.

The post Ethereum User Spends $9,500 in Fees Sending Just $120 in an Error to Forget appeared first on Bitcoin News.

Yearnify Finance (YFY) Bringing Value To Decentralized Finance Ecosystem – Token Pre-Sale Is Live

07/11/2020 by Idelto Editor

Yearnify Finance is considered as one of the most innovative sources of passive income by most of the investors. It has drawn attention due to its potential high returns and extreme security majors.

What is Yearnify Finance?

In this article, we will provide detailed information about Yearnify Finance and its overall aspects.

Yearnify Finance is a community-centered DeFi-project, modeled to take the successful features of Yearn Finance (YFI), and improve upon them, yearnify aims to bring the true value of yield farming finance accessible to all users, yearnify offers the most secure and simple way to earn reliable yields on your assets.

Yearnify is generally a platform composed of the protocols built on Ethereum. It increases the annual percentage yields (APY) of the cryptocurrencies which are deposited into the DeFi system

Yearnify Finance is a powerful DeFi Platform focusing on staking, farming, borrowing and mortgage. Our platform is powerful enough from a scalability, interoperability, developability and governance perspective to help make the vision of Web3 a reality that aims to get more value for an investment,

Yearnify Finance Products

We’re building a transparent, secured, user-friendly, and simple yield farming platform, that would provide opportunity for the YFY holders to get benefits from several platforms provided by Yearnify Finance.

Yearnify Finance staking platform enables investors to earn a yield on YFY token, depositing, and selecting the amount you want to stake, you will get an APR of 29%, and it can be unlocked anytime and you will get FYFY Token reward also.

Lending – YFY will provide you with the highest yield in the market today, Upto 29% APR for supported coins (DAI, USDC, USDT, TUSD, BUSD, PAX) STAKING – Stake YFY and Earn 29% APR, YFY can be unlocked anytime without any lock period or other obstacles on your way.

Yield Farming – It is simply based on a farmer who plants and harvests all his crops. The more you farm, the more the harvest, the more the invest the more the profit. With YFY you will be able to enjoy Yield Farming to its fullest.

Yearnify Exchange – Exchange between your assets without sending anything to anyone or without any fear of loss.

Dapps – Yearnify is also developing their own Dapp running on the Ethereum Network, allowing users to use it from any of their favorite wallet (Trust wallet, MEW, Metamask etc.) to search and use their Decentralized Ecosystem.

Where to buy YFY Tokens : ( pre-sale )

The fact that makes Yearnify unique is its Limited token supply. Talking about limited supply, only 29,000 YFY minted will be distributed to the community through Airdrops and Pre-sale events.

Yearnify finance has also made some big announcements such as getting their YFY Token listed on big exchanges like Uniswap, Kucoin and Hotbit , before the end of the year with an initial listing price of 3200$ per YFY Token.

Presale link : https://yearnify.com/index.php/pre-sale-yfy-token/

Presale steps:

Go to the YFY presale link, then connect Your Metamask , Get your ETH ready, add amount you want to buy and press buy YFY , if you do not have metamask , simply follow instructions here https://telegra.ph/YEARNIFY-FINANCE-PRE-SALE-IS-LIVE-10-18

(Tokens unsold would be burned, Uniswap liquidity will be locked 100% for 1 year)

Yearnify Finance Tokenomics :

Token Type : ERC-20

Token symbol : YFY

Token Name : Yearnify Finance

Contract : 0xb9ae6fe574982e891666a5b1c2b33e79eb5dabb5

Total Supply : 29,000 YFY

Circulating Supply : 12,000 YFY

Initial Uniswap Liquidity : 9,000 YFY

YFY for Pre-sale : 8,000 YFY

Team Tokens : 500 YFY

Marketing & Development : 2,000 YFY

Airdrops : 8,000 YFY

Conclusion

Yearnify finance offers an innovative platform and promotes Defi to an advanced level. It aims to work efficiently with the other existing protocols of Defi to build the new world ecosystem .

Yearnify Finance Community :

Website : https://yearnify.com

Telegram channel – https://t.me/yearnifynews

Email : [email protected]

This is a sponsored post. Learn how to reach our audience here. Read disclaimer below.

The post Yearnify Finance (YFY) Bringing Value To Decentralized Finance Ecosystem – Token Pre-Sale Is Live appeared first on Bitcoin News.

Decentralized Exchanges That Use Automated Market Makers Now Represent 93% of the Market

06/11/2020 by Idelto Editor

A recent report by Consensys says the surge in decentralized exchange (DEX) volumes in Q3 of 2020 is down to their adoption of the automated market maker (AMM). According to the report, DEXs that use AMM, a software that algorithmically creates token trading pairs, now represent 93% of the market.

The good side of AMMs

Already, as a consequence of using the AMM, Uniswap’s September traded volume topped $15.4 billion, a figure nearly $2 billion ahead than that of Coinbase’s. Prior to the surge in the use of AMMs, order-books were used instead.

The Consensys Defi report asserts that the increase in use of AMMs is largely down to them being “seen as a valuable way to reduce the chances of human error or manipulation and also to leave a clear audit trail for regulators.”

According to an excerpt from the report, the market maker software’s “success in Q3 proved that AMMs were ready for the mainstream — so much so that the total value of AMMs on Ethereum surpassed $4 billion.”

The key difference between AMMs and order books is that liquidity providers do not compete with each other for order flow. All the liquidity providers avail liquidity only at the prices established by the one algorithm that applies to everyone. The entire order flow is distributed among all the liquidity providers proportionally.

The counter-narrative

However, many within the Defi community space are making the argument against AMMs despite the embrace by DEXs. Expounding on this is Dmytro Volkov, the CTO at CEX.IO who makes one key point:

“(An) AMM creates an inefficient market! Arbitrageurs extract profit from the inefficiencies of liquidity providers, meaning that liquidity providers suffer a loss (or lose profit) to make that possible. This makes such markets very attractive to arbitrageurs because they provide profit basically without risk.”

Volkov also notes that “inefficient liquidity providers are up against arbitrageurs, who are professional or very experienced traders with fast, high-quality arbitrage algorithms.” According to him, the outcome of such a scenario is quite predictable, the professional traders will prevail.

So while the Defi report attributes the increased DEXs volume to use of AMMs, Volkov thinks liquidity providers that currently use this market-making technology, are only using this for the sake of “simplicity” despite the possibility they will incur losses.

Reiterating the same inefficiency point is Sam Bankman Fried (SBF) the CEO at FTX, whose tweet in October makes the argument that “liquidity providers are making a mistake, and bleeding to impermanent loss (IL) but don’t realize it.” The CEO, who says AMMs exist “because blockchains don’t have the throughput to support order-books,” argues that IL is just a “PC euphemism for doing bad trades.”

IL is when a liquidity provider has a temporary loss of funds because of volatility in a trading pair.

No sustainable use case

In his long Twitter thread, SBF ultimately concludes that “AMMs force you to always make two-sided markets at mid. That strategy does not generally do so well. And throwing math at it, or synthetic hedges, or whatever, doesn’t really help.”

In the meantime, John David Salbego, the founder and CEO at Anrkey X praises “the math, algos and initial premise” of AMMs but argues that “there is no real use case or sustainability with AMMs in their current state.”

Salbego, who generally echos the same sentiments as SBF and Volkov, is also concerned with other problems that plague AMMs such as high ETH gas fees, the arbitrage, market price fluctuations and the risk of not filling. Unsurprisingly, IL is cited as another hurdle as Salbego explains:

“Also, I do think having control over your IL is another major challenge holding back this technology, but I see some cool projects working on solutions that seem really promising.”

Dissenting view

However, other players like Viacheslav Akhmetov, the blockchain lead at Mercuryo.io remain hopeful about its prospects. Akhmetov points out that the concept of “AMM is still emerging and there are a lot of new things that could be introduced.”

Others think using a different blockchain could produce better results. Still, they acknowledge that the current popularity of the Ethereum blockchain makes switching between chains difficult.

What are your thoughts on the role of AMMs? Share your views in the comments section below.

The post Decentralized Exchanges That Use Automated Market Makers Now Represent 93% of the Market appeared first on Bitcoin News.

$100 Million Accelerator Fund from Binance Now Supports PARSIQ, a Reverse-Oracle Blockchain Platform

03/11/2020 by Idelto Editor

PRESS RELEASE. PARSIQ is a working platform that makes blockchain events consumable and blockchain data actionable. It allows users—both individuals, companies, enterprises—to monitor any events across different blockchains in real-time and at scale and connect those events to any off-chain apps or devices to automate different workflows.

A blockchain-to-everything monitoring service PARSIQ was announced to get Binance funding in addition to the other four projects. Even though PARSIQ is not a DeFi project itself, it brings another layer of security and transparency addressing the main problems in DeFi.

PARSIQ connects blockchain activity to off-chain apps and devices

PARSIQ technology is a proprietary ParsiQL programming language that allows users to monitor and interpret an endless stream of data on the blockchain.

Among the obvious use cases is monitoring the wallets of traders and ordinary users. Among the non-obvious are complex system integrations for financial institutions and DeFi projects that use the PARSIQ infrastructure to improve security, conduct audits, comply with regulatory requirements, and expand their workflows in other ways.

The primary drag and drop interface of the service – Quick Monitoring Wizard – allows users to create their own notification system for the required crypto-addresses in a few clicks and bind additional data: Risk Score, information about the amount in equivalents (for example, in fiat or BTC), set up uploading to Google Spreadsheets or send directly to Telegram messenger.

PARSIQ’s technology was recently used to help KuCoin hack victim projects restore the balances and conduct hard-forking of their tokens in order to restore the tokens to their rightful holders.

How PARSIQ helps entrepreneurs and enterprises embrace automation with blockchain?

PARSIQ makes it easy to integrate blockchain infrastructures into existing businesses by connecting workflows between blockchains to off-chain third-party applications. Zapier, Google Apps, Telegram, and even data analytics platforms can easily connect with blockchain activity via PARSIQ’s Smart-Triggers.

Blockchain transactions have become an integral and essential part of many businesses today. Whether it involves receiving funds for client payments, sending payments to vendors, or executing smart contracts, you need to be on top of your transactions with smart notifications and real-time alerts. The possibilities are endless, and the use cases are only limited by your need to access this raw information.

PARSIQ automates the monitoring of blockchain transactions by tracking the wallet addresses that need to be watched. Beyond instant notifications, your business can gain in-depth knowledge and information from these transactions. This includes:

Actionable insights from market data, which can be used in analyzing both on-chain and off-chain data sources.
Enriching transaction data with useful information like the fiat price value or even the sender address’s risk-scoring can enhance the overall quality of data being collected.

New Epoch 2.0 economic model for PRQ tokens

On Thursday, October 29, the PARSIQ team announced a planned transition to a new expanded token economy, which will provide even greater utility for the PRQ token.

The first innovation that the team told about was Public Projects, which serve as additional gamification and attraction for users. With Public Projects, users can subscribe to existing PARSIQ Projects that were pre-made by other users and finally receive some fees in PRQ as a stable motivation.

“By paying Public Project developers in PRQ, users that have subscribed to the Public Project will incentivize the creators to invent interesting, complex and more important – problem-solving projects.” – says Tom Tirman, CEO of PARSIQ.

The team has already shown an example of what a Public Project can look like. A few weeks ago, PARSIQ released FLASHR – a free product to track famous crypto projects’ asset movements. Flashr is a public and free-to-use monitoring system that allows users to be notified of any token movements that they are interested in or invested in. Currently, FLASHR keeps track of 13 projects: Aave, Serum, FTX, Huobi, PARSIQ, Band Protocol, Compound, Reserve Rights, DFI.Money, Chainlink, CoinMetro, Yearn.finance, Uniswap.

The rest of the Tokenomics announcement covered new requirements for holding some amount of PRQ to monitor the same number of addresses; O2 Protocol for risk-free collateral-less loans system provided to the crypto community by the PARSIQ team; and also new information about the Uniswap liquidity provider bonus program, which was announced earlier.

As the team stated, PARSIQ plans to reveal another fruitful partnership with a top-10 blockchain project at the beginning of November. PARSIQ is actively working to partner with major layer 1 blockchain protocols to expand the range of blockchain integrations and give projects that build on those protocols the ability to monitor and automate workflows between blockchain and off-chain.

Visit the PARSIQ website to discover some possible use-cases and find more details on the project and token: https://parsiq.net

Media Contact
[email protected]

This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

The post $100 Million Accelerator Fund from Binance Now Supports PARSIQ, a Reverse-Oracle Blockchain Platform appeared first on Bitcoin News.