Earlier this year, the country passed laws limiting the ability of companies to advertise digital assets, stating that they were too risky and “not suitable for the general public.”

Stablecoin Wars: Terra LUNA is Trying to Depeg Maker DAO’s DAI Stablecoin

Terra (LUNA) is at war with Maker DAO (MKR) and its DAI stablecoin. Terra is starting a new Curve war with Maker DAO, and it partnered with serious Convex whales to choke out DAI’s liquidity.

UST is the Terra ecosystem’s stablecoin pegged to the US Dollar. Last year, UST exploded in popularity, and now the token has a $16.6B market cap. DAI is Maker DAO’s US Dollar-pegged stablecoin. It has a $9.5B market cap.

CRV+CVX combo can direct large portions of DeFi markets and are primitive protocols behind the DeFi infrastructure.”

Curve’s 3pool is the largest, most used, and most important stablecoin liquidity pool in the world. The liquidity pool allows investors to swap DAI, USDC, and USDT stablecoins for each other with very low slippage and fees.

Today, the 3pool has $3.2B in liquidity–45% of which is DAI tokens. Almost all stablecoins pair with the 3pool for liquidity and stability, including UST and FRAX.

So if you swap UST for USDC on a random DEX, there’s a good chance that DEX is using the 3pool behind the scenes for liquidity.

Average Joe Crypto explains: “The largest and most important pool on Curve has always been the 3pool. […] 3pool is critical infrastructure for maintaining the peg between USDT, USDC, and DAI, and by extension, critical for DeFi.

They are used primarily on chains notorious for high fees and congestion, such as BTC (the Lightning Network) and Ethereum.

Games using the BSV blockchain, such as CryptoFights, do not suffer from sidechain vulnerabilities—BSV has the speed and capacity to handle all game transactions on the main chain. That includes both gameplay data and player assets, as well as any other application running on BSV.

Axie Infinity is a battle game where users play to earn tradable tokens, such as “Smooth Love Potion” (SLP).
Like other games of its type, Axie is particularly popular in developing countries, where a player’s monthly income can exceed the national average.

The 600m network sky mavis axient

For individuals, this is tough to achieve, but for very large projects with huge amounts of CRV, it’s possible to boost rewards by 2.5x. But if Curve is decentralized, who decides which crypto protocols get massive Curve pools?

Convex Finance (CVX) is an incentive protocol built on top of Curve Finance.

Convex rewards Curve liquidity providers and CRV token holders by allowing them to stake their assets on Curve for higher yields than Curve offers. As Shrimpy Academy explains: “Essentially, everyone using Convex is pooling their assets together so the platform can acquire more CRV, convert it into veCRV, then maximize boost to all Curve LP token holders.”

Inclusion in a Convex liquidity pool provides massive liquidity to a project.
As Reddit user u/Set1Less explains, “If Curve is the king of DeFi, Convex can be regarded as the King maker.

A major hack has exposed a vulnerability facing blockchain gaming startups.

Hackers stole more than $600 million worth of cryptocurrencies after compromising the Ronin Network, which powers the blockchain-based game “Axie Infinity.” Vietnam-based Sky Mavis, which owns Axie, raised a $152 million Series B led by Andreessen Horowitz last year, reportedly at a $3 billion valuation.

On March 23, hackers made off with 173,600 in ethereum and 25.5 million USDC, a stablecoin pegged to the US dollar. After gaining access to private keys, the hackers took control of a majority of the “validator nodes” that are needed to approve transactions between Ronin and the ethereum network.

“Axie Infinity” has become popular with gamers who earn digital money by playing, selling virtual characters and other means.

Hackers exploited a cryptocurrency exchange network in a virtual game called Axie Infinity to steal more than $600 million from the system.

The attacker broke into the Ronin network, essentially a bridge that transfers cryptocurrency in and out of the game, by exploiting a backdoor in the virtual network on March 23, according to a Tuesday blog post from Sky Mavis, the makers of Axie Infinity.

The unknown person or group stole 173,600 Ethereum and 25.5M USDC, a cryptocurrency linked to the U.S. dollar, which in total is worth around $625 million.

Sky Mavis was alerted to the attack on Tuesday by a user who was unable to pull 5,000 Ethereum from the game.

DAI is the only stablecoin in the 3pool that’s excluded from the 4pool.

Curve Finance (CRV) is the largest DeFi protocol, specializing in stablecoin swaps, with $21B in total value locked and a $1.4B market cap for its CRV governance token. Curve is the largest decentralized exchange (DEX) and it offers the deepest liquidity for stablecoins on the Ethereum network.
Curve is a primitive protocol in the DeFi ecosystem, and its liquidity pools are used by Fantom, Yearn Finance, AAVE, SushiSwap, Synthetix, Badger DAO, Cream Finance, Compound, and many others.

From a crypto protocol’s perspective, inclusion in a popular Curve pool can add a massive boost to a project’s liquidity. Additionally, as more veCRV is applied to a liquidity pool, its yields increase.

The attacker used hacked private keys that Sky Mavis believes were acquired through a combination of social engineering and old school hacking.

According to Sky Mavis, the attack was possible because Sky Mavis and the Axie DAO used bad security practices to handle high player volume late last year: “Sky Mavis requested help from the Axie DAO to distribute free transactions due to an immense user load. The Axie DAO allowlisted Sky Mavis to sign various transactions on its behalf.

This was discontinued in December 2021, but the allowlist access was not revoked. Once the attacker got access to Sky Mavis systems they were able to get the signature from the Axie DAO validator by using the gas-free RPC.”

The Ronin sidechain was a good target for an attack like this because it only has 9 validators, and it considers 5 of 9 nodes as the consensus threshold.

This applies even if there is no indication of suspicious activity.

The proposal must now pass through the parliament and national ministers in order to become law.

Crypto.com and Bybit are Moving to Dubai

Since Russia invaded Ukraine, there has been a reshuffling and strengthening of who is, and who is not, pro-cryptocurrency. Dubai, part of the United Arab Emirates, has always leaned pro-crypto, but they are making the position official by explicitly stating their intent to become a hub for the technology.
They have also stated that they’ll soon be adopting a regulatory framework.

The emirate of Dubai announced they’ll be launching a regulatory license for virtual asset companies. Shortly following this announcement, FTX Europe and Binance both received their regulatory approval from Dubai.

This was discontinued in December 2021, but the allowlist access was not revoked.”

Tracking the Ronin Bridge hacker

Ronin developers said they’d found the hacker’s wallet address, which at press time appeared to still hold all the proceeds from the theft. Blockchain forensics firm Chainalysis is on the case, and the team is talking to security teams at exchanges and “working directly with various government agencies” to track down those responsible.

Major trading exchanges, including Huobi and Binance, signaled they would support Axie Infinity by keeping an eye out for any suspicious asset trading.

Huobi will fully support @AxieInfinity as it deals with the aftermath of the attack and theft on its Ronin chain.

Back in March, play-to-earn pet battling game Axie Infinity was hacked and drained of cryptocurrency tokens worth over $600 million in what could be the biggest cryptocurrency heist in history. Following the hack, developer Sky Mavis was forced to shut down the system and freeze all user assets as they began their investigation into the matter.

In a perfect example of how cryptocurrency transactions can be traced if you’re willing to dig far enough, Axie Infinity CEO and Co-Founder Trung Nguyen had apparently moved $3 million worth of AXS tokens from Axie’s blockchain ecosystem to the Binance cryptocurrency exchange platform using his personal crypto wallet prior to announcing the hacking incident and freezing player assets.

At 18:44 UTC, AXS trades at USD 65 and is down almost 9% in a day, SLP dropped 11% to USD 0.02, while RON crashed 20%, reaching USD 1.84.

Elliptic said that its internal analysis indicates that the exploiter has already begun laundering their proceeds, with funds originating from the attack already reaching at least “three prominent crypto exchanges.” The exploiter is using both centralized and decentralized exchanges, they added.

“At the time of writing, around USD 16 million in ETH has been laundered in this manner, leaving USD 524 million in various Ethereum accounts which appear to belong to the attacker,” the firm said.

Similar Posts:

Leave a comment